Korean ambassador in Dhaka Park Young-sik has sought an economic partnership agreement (EPA) with Bangladesh, saying Seoul has no strategic interests like other countries.
"Korea is not India, China or the US, and does not have strategic interests. Therefore, both countries could further develop bilateral relations in a mutually beneficial way," he said while hosting an iftar for members of the Diplomatic Correspondents Association, Bangladesh (DCAB) on Sunday.
DCAB President Nurul Islam Hasib sought support from the embassy to help diplomatic correspondents stay informed about "South Korea's role in the international arena such as inter-Korean relations, regional security, economic diplomacy, soft power and culture, global health and technology, and multilateral engagements."
Korea recognized Bangladesh as an independent state on May 12, 1972. Both nations established diplomatic relations on December 18, 1973. The year 2023 marked the 50th anniversary of their bilateral relations.
Bangladesh’s exports to Korea increased consistently in the last five years and reached $624 million last year.
The ambassador said Korea runs a trade surplus with Bangladesh. However, if an EPA is reached between the countries, it will result in more balanced trade. The trade surplus is offset by Korean investments, he added.
The data on imports from Korea to Bangladesh is misleading since Korean companies have made investments in Bangladesh, India and other Asian countries,” the ambassador said.
He, however, added that visa issues, customs clearance, rational tax and tariff policy, and repatriation of profit with no holding tax are more important to get more investments from Korea.
"Bangladesh is the most difficult country to get and renew visas," he bemoaned.
Arbitrary enforcement of customs clearance standards by officials, especially within the EPZ, undermines the credibility of the administration and the predictability of business, he said.
"FDI requires a comfortable life in host countries because investors have to live [there]. Most Koreans prefer Vietnam and Indonesia."
He said Bangladesh and Korea can establish a chapter of cooperation within the framework of an EPA, which will discuss a lot of cooperation in different sectors, technical transfer and investment based on new technology.
"Korea aims to become a major partner in Bangladesh’s infrastructure development, as we have already achieved in the RMG sector," he said as South Korea helped Bangladesh to grow its readymade garment industry with training and investments in the late 70s.
"An EPA between Korea and Bangladesh has been discussed since early 2023, but no real progress has been made."
"Earlier this year, the Korean embassy presented the outcomes of the Joint Study Group on the potential EPA between Bangladesh and Japan to the Ministry of Trade, Industry and Energy (MOTIE) of Korea. The MOTIE responded positively to a real discussion on the EPA with Bangladesh," he said.
Korean trade minister and Bangladesh's state minister for commerce briefly met during the 13th WTO ministerial conference and discussed bilateral EPA, he said.
