In recent years, in order to promote industrial upgrading, the Korean government has actively provided financial subsidies to enterprises and encouraged the relocation of labor-intensive industries. Nicaragua is close to the United States, has a convenient geographical location and low labor wages. It also enjoys the advantages of multiple free trade agreements and TPL tariff quotas for exporting to the United States, attracting a large number of Korean textile and garment industries to settle in.
In order to expand the scale of operations and increase corporate profits, Korean companies have invested heavily in the operation of export processing zones. It is reported that in 2013, the garment department of South Korea’s famous Hanshi Group officially entered Nicaragua and is expected to employ 3,000 people locally to engage in the processing and production of garments exported to the United States.
