Most of the policies of major developed countries to revitalize domestic industries and economies are recently focused on reshoring. Reshoring is an activity that relocates overseas production facilities to the home country or expands investment in do...
Most of the policies of major developed countries to revitalize domestic industries and economies are recently focused on reshoring. Reshoring is an activity that relocates overseas production facilities to the home country or expands investment in domestic production bases in order to revitalize the domestic manufacturing industry and thus boost the economy. Developed countries are also implementing on-shoring policies to boost overseas companies' investment in their country, and this caused for Korean companies to face difficult choices between domestic reshoring and expansion to other advanced countries. This situation is an issue that needs to be dealt with not only at the corporate level but also at the national level. It is necessary to objectively understand the gains and losses between the effect of the policy direction emphasizing the return of domestic companies and the expansion of business activities to enter into foreign countries. In order to create jobs and improve household income while protecting domestic industries, Korea has been promoting a reshoring policy since 2012, but the number of U-turn companies is still insignificant compared to major developed countries, and related research to systematically assess the reshoring effect in Korea is not yet active. Therefore, in order to promote a reshoring policy suitable for the Korean business situation and industrial structure, it is necessary to understand the effectiveness of the reshoring policy so far. Existing studies were conducted in the early days when the reshoring phenomenon occurred, and the accumulation of relevant data was insufficient. Thus it can be said to have some limitations since the analysis from various perspectives was not fully conducted. Above all, there is a lack of sufficient research on the methodology for quantitatively measuring the impact of reshoring, so additional research on these issuses need to be preceded. Therefore, in this study, to identify the impact of reshoring, a new index was created using the classification by technology level and employment coefficient in the industry input-output table to understand the reshoring phenomenon in detail in terms of technology level and employment effect, together with a comparative analysis to previous research result. The proposed index is designed to identify the actual impact of key industries by considering the degree of technological innovation incorporating the industry-wise technology level. Based on the results of this study, a selective reshoring policy suitable for the industrial structure was proposed considering the level of technology according to the situation in Korea. If a detailed analysis of the expected effects of reshoring by industry is possible, it is expected that it will be possible to select and focus on reshoring support policies, establish strategies, and plan effective support directions along with industrial and economic revitalization.