Nepes wins presidential commendation for semiconductor supply chain work

Ministry, KOTRA hold reshoring awards ceremony and forum

Participants discuss AI adoption in manufacturing and regional investment ties

Government eases eligibility criteria; local governments compete for returning firms

KOTRA's headquarters in Yangjae, Seoul. [KOTRA]
KOTRA's headquarters in Yangjae, Seoul. [KOTRA]

The government has moved to link AI adoption in manufacturing with regional investment incentives as part of a broader push to encourage Korean companies operating overseas to return home. Chipmaker Nepes, which established an advanced semiconductor packaging process at a domestic facility, received a presidential commendation for its contribution to strengthening the supply chain.

The Ministry of Trade, Industry and Energy, the Korea Trade-Investment Promotion Agency and the Korea Industrial Complex Corp. said Thursday they held the "2026 Reshoring Merit Awards and Forum" and a "Reshoring Academy" over two days beginning Wednesday at the Grand InterContinental Seoul hotel.

The events were held in conjunction with Invest Korea Summit 2026, a national investment promotion conference. The aim was to encourage not only foreign companies to invest in South Korea but also domestic firms with overseas production facilities to bring those operations back home.

At the merit awards ceremony, Lee Chang-woo, chief executive of Nepes, received a presidential commendation. The chipmaker was recognized for building an advanced semiconductor packaging process at its reshored facility, strengthening the domestic supply chain and creating skilled jobs. Eleven other individuals and organizations that contributed to reshoring also received commendations.

This year's forum centered on how reshoring could serve as more than a simple relocation of overseas production lines, framing it as an opportunity to accelerate the transition to AI-driven manufacturing.

Jang Young-jae, a KAIST professor in the Department of Industrial and Systems Engineering, said reshoring presents "an opportunity to transition to AI-powered factories" and outlined practical strategies for introducing AI on the factory floor.

The government is also broadening the support available to returning companies. Through a reshoring reform and promotion plan announced in May, the Ministry of Trade, Industry and Energy said it would ease the criteria used to assess whether a company's overseas and domestic operations are in sufficiently similar industries.

Under the previous standard, similarity in products or production processes was the primary consideration; going forward, core technologies, product functions and supply chain linkages will also be taken into account. The government plans to expand exemptions from overseas facility restructuring requirements for companies that establish a "mother factory" — a core manufacturing facility in advanced industries or supply chains — in South Korea. Related regulations are to be revised for full implementation next year.

Separate government efforts to advance AI in manufacturing are also under way. The Ministry of Trade, Industry and Energy launched the M.AX Alliance Data Division on Oct. 29 and announced a plan to improve the collection and use of manufacturing data. The initiative aims to address inconsistencies in data formats, quality and security across companies to expand AI applications on the factory floor.

The forum also featured a competition among local governments to attract reshoring companies. North Jeolla Province, North Gyeongsang Province, the South Gyeongsang Province Investment Promotion Agency and South Chungcheong Province each presented their regional industrial development policies and investment support programs.

The local governments highlighted investment conditions including power and water supply, workforce availability and specialized industrial complexes, and offered tailored support packages for individual companies. The event also included one-on-one consultations between companies considering a return, local governments and KOTRA.

The Ministry of Trade, Industry and Energy shared the direction of its revised reshoring support policies, while KOTRA briefed participants on available support programs and application procedures.

"Reshoring is becoming a strategic opportunity for companies to secure a stable production base while also transforming into advanced AI-driven manufacturers," said Kim Tae-hyung, head of Invest Korea at KOTRA. "We will continue to work with local governments to provide tailored support so that companies' return home can serve as a catalyst for accelerating regional growth."


kwater@heraldcorp.com