(Unofficial translation)

Ulsan citizens, distinguished guests from home and abroad, I am glad to meet you all.

Today, here in Ulsan, we’re holding two ceremonies: the groundbreaking for a Hyundai Mobis factory to produce eco-friendly car parts and an investment MOU signing for Korean parts and components businesses relocating back home. Hyundai Mobis – in a first for a large business – will relocate its overseas production facilities to Korea, and five other car parts and components companies are also returning home. It is truly welcome news as they will help revitalize our economy and create new jobs.

I extend my gratitude to the business leaders, Ulsan Mayor Song Cheol-ho and other relevant officials for having made such significant decisions. 

Hyundai Mobis will begin to produce battery modules and other components for electric vehicles at the newly built factory in Ulsan from 2021. Auto parts manufacturing SMEs and mid-market companies will also expand their production lines in Ulsan, Gyeongsangbuk-do Province, Incheon and Chungcheongnam-do Province to mass-produce core parts and components for next-generation vehicles. With more than 360 billion won in investment, some 730 new jobs will be created.

In 2013, the Act on Assistance to Korean Off-shore Enterprises in Repatriation was legislated to encourage Korean businesses that have located overseas to return home. This year has seen the best results in both quantity and quality. It will also become possible to enhance the competitiveness of our future cars. 

With the determination of businesses at the core, the Government and Ulsan Metropolitan City added proactive support to make today’s signing ceremony possible. It is yet another mutually beneficial cooperation model following Gwangju- and Gumi-type job creation models. 

At a time when the system for free and fair trade is wobbling and politically motivated trade retaliation is occurring, we have no alternative but to protect our economy by our own means. In trying times, promising businesses making a U-turn to Korea provide hope for our economy. Going forward, the Government will continue to extend unsparing support and encouragement to those companies that invest in a return to Korea. 

Ulsan citizens, 

Businesses have relocated factories abroad in search of low-cost labor or as a way to overcome trade barriers. Korea’s outbound investments have continued to grow, and manufacturing accounts for around one third of the total. 

It’s very natural for domestic companies to secure competitiveness through overseas investment and for foreign businesses to invest in our country. However, it would be lamentable if local businesses relocate overseas because domestic production lacks a competitive edge, rather than expanding their operations. If just 10 percent of the manufacturing sector’s overseas investment is repatriated, it could lead to investments worth about 2 trillion won a year and help create numerous job opportunities. 

An environment should also be created that allows local businesses to enhance their competitiveness at home as they see fit.

Developed countries such as the United States and Germany are seeing an increasing number of their businesses return from abroad by means of drastic incentives and regulatory reforms. While some sectors related to low-wage labor and less sophisticated technologies remain overseas, high-tech industries and R&D that require technological innovation are being transferred back to the home country.

In this era of the Fourth Industrial Revolution when technology equals competitiveness, it is crucial to encourage U-turn investment for our leap to become one of the top four manufacturing powers in the world.

The Government has come up with a comprehensive support plan for enterprises returning from overseas to enhance their competitiveness at home. First, we have expanded the assistance criteria for such businesses; businesses that have switched their operations to produce a different but similar item have now become eligible for support. 

If a firm manufacturing landline telephones overseas returns to Korea and produces parts for smartphones, it can still be categorized as an enterprise returning from overseas.

We've also increased conveniences and benefits for businesses. We have taken measures to encourage large businesses to return to local areas by easing requirements and procedures as well as by allowing them to be eligible for tax reductions and subsidies.

The reduction of the special rural development tax enjoyed by foreign-invested enterprises has also been applied to enterprises returning from overseas. Government-backed financing is also being provided for initial facility investments and the building of new smart factories. 

I hope that the support system for enterprises returning from overseas will serve as pump priming to enable a comeback for an increasing number of businesses. 

The auto parts manufacturers that are now returning to Korea made their decisions after considering the changed support system and the Government's vision for the eco-friendly vehicle industry.

The Government will further facilitate U-turn investments by fostering new industries, pushing for regulatory reforms and nurturing innovative individuals.

Next year, the Government will set aside 4.7 trillion won of the budget for three new industries – system semiconductors, biohealth and future vehicles – as well as artificial intelligence, data and 5G, thereby assisting R&D investment and market creation. It will also help train over 200,000 specialists by 2023. 

I’m looking forward to many businesses investing in the country with confidence in the Government’s innovative growth vision and strategy. 

Bills to introduce amendments to facilitate U-turn investment, including by those in the highly effective job-creating knowledge service industry, are pending in the National Assembly. I ask the National Assembly to show special interest and cooperate to help revive the economy and increase the number of jobs. 

Ulsan citizens and distinguished guests from home and abroad, 

It’s very meaningful that today’s ceremony for auto parts manufacturers pledging investments is being held in Ulsan, where the Republic of Korea’s auto industry success story was written. 

Ulsan’s quest to foster the hydrogen economy and eco-friendly car industry brings new hope to the regional economy and auto industry. 

Ulsan has a vision to become “the world’s best hydrogen city” with a goal to produce 500,000 hydrogen vehicles – with 67,000 of them distributed within the city by 2030. With Hyundai Mobis’s construction of an electric car parts factory here, Ulsan will have a production platform for electric cars in addition to the one for hydrogen vehicles. If deregulation efforts are added, including the designation of a special regulation-free zone, Ulsan’s economy will be able to take a new leap forward. It will also create jobs and hope for young adults in the area. 

I hope that the U-turn investments in Ulsan today will spread to other areas by encouraging the second and third large-scale acts of repatriation.      

The people and businesses are now starting to share the same vision for the national economy. What we need now is the determination and confidence to protect our economy on our own. Today, I have witnessed hopeful signs for our economy being created by our businesses and people. No one can slow our strides toward a new future. The Government, the people and local areas will work together to revive the Republic of Korea’s economic vitality without fail. 

Thank you.