Last year, more than 20 South Korean companies with factories abroad decided to move operations back home.

According to the Ministry of Trade, Industry and Energy on Thursday, 24 companies returned in 2022, two less than the previous year but still the second largest number ever.

The investment plans of these companies amounted to around one-point-one trillion won, or around 866 billion U.S. dollars, an increase of 40 percent on-year and the most ever.

Fifteen companies returned from China, followed by four from Vietnam.

These companies mainly cited rising production costs, bad management overseas and an expanding domestic market as reasons for coming back.

More than 120 companies have returned since 2014 following the enactment of a law supporting returning companies.