Only three out of 100 big Korean companies are considering returning home even as the pandemic has prompted many to reduce their supply chain dependence on China, a study showed.

More than 56.7 percent of local companies faced business upsets after the COVID-19 pandemic shook the global supply chain, according to a poll by the Federation of Korean Industries revealed on Sunday.

The survey was based on 157 of the country’s largest 1,000 non-financial enterprises in terms of sales.

The automotive segment was the hardest hit, with 66.7 percent experiencing a negative impact. It was followed by machinery and equipment at 57.1 percent and petroleum and petrochemical at 50 percent.

Nearly half - 48.4 percent - expected a shake-up in the global supply chain, though 37.4 percent of them did not yet have plans.

Among those that were ready, 21.2 percent considered diversifying their industrial chains, 20.2 percent bolstering their network of partners and 13.1 percent reinforcing their internal production capacity.

Only 3 percent was studying the option of moving back home.

To better respond to changes in the global business environment, about 26.1 percent of the companies called for inter-governmental efforts to address trade protectionism, 21.6 percent support to raise domestic manufacturing competitiveness through digitalization and automation, and 19.9 percent deregulation.

To entice reshoring, 32.5 percent called for tax incentives and R&D assistance.

By Lim Hyung-joon and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]