South Korean Ambassador Park Young-sik has proposed helping Bangladesh to have further infrastructural development “to make its economy more resilient and sustainable”.
“Korea aspires to become a vital partner in Bangladesh's infrastructure advancement, just as we have already accomplished in the RMG sector,” he said while addressing the National Day reception on Thursday night.
Korea and Bangladesh established diplomatic ties on December 18, 1973.
It is a well-known story that the partnership between Bangladesh Desh Garment and Korean company Daewoo Corporation in 1979 planted the seed of Bangladesh’s RMG industry.
Since then, Korean garment enterprises have made contributions to the rapid growth of Bangladesh’s RMG industry, which accounts for over 85% of the country's total exports.
Korea's investment in Bangladesh has become the fourth largest in terms of accumulated amount.
There has been an increase in investment in manufacturing industries such as automobiles, mobile phones, and consumer electronic goods through joint ventures with local partners.
“The success story in Korean investment is the establishment of the first country-specific private Export Processing Zone, KEPZ, in Chittagong. The KEPZ is currently exporting roughly 1.25 billion USD and employing 70,000 workers,” the ambassador said.
“I hope that the KEPZ will continue to serve as a flagship symbol of the Korea-Bangladesh business ties.”
LDC graduation requires focus on quality
Current bilateral trade between Korea and Bangladesh is approximately $2.6 to $3 billion.
The two countries agreed to start the negotiation of a bilateral Economic Partnership Agreement. This EPA will further enhance trade and investment in mutually beneficial ways, the ambassador said.
Looking to the future, he said, Bangladesh is marching towards graduation from the LDC status in 2026.
“Bangladesh has shown great potential, as evidenced by the tripling of Bangladesh’s per capita income over the last decade. However, the post-LDC graduation phase will require considerable efforts from both the government and the private sector to overcome a lot of challenges which the LDC graduation would cause in a few years to come.”
“Graduation from LDC status means that Bangladesh should focus not just on the quantity, but also on the quality of its economic growth.
“The quality must be driven by innovation, knowledge and technology-areas where foreign companies can make substantial contributions. This is why Bangladesh needs foreign direct investment,” he said, adding that the Korean companies have already demonstrated their strong will to make continuous investment in Bangladesh, demanding a better business environment for foreign investors.
“Currently, numerous projects are under discussion through the Economic Development Cooperation Fund, soft loans from the Korean government, or the Public-Private Partnership mechanism.
“It is my sincere hope that ongoing projects will make smooth progress and greatly contribute to the development of infrastructure in Bangladesh,” he said.
A hub for Bangladeshi migrant workers
Korea has taken an active role in implementing development projects across multiple sectors, including education, technical training, health, and ICT.
Korea’s assistance has extended to serve the humanitarian purpose since 2017.
Korea has annually provided humanitarian aid of $3 to $5 million for the Rohingyas and their communities in Bangladesh, and the funding for humanitarian aid was increased to $10 million this year.
Additionally, Korea has become a hub for Bangladeshi migrant workers.
Since 2008, more than 35,000 Bangladeshi workers have gone to Korea under the Employment Permit System (EPS), he said.
“The Korean government is committed to ensuring that migrant workers have safe and comfortable working conditions, whereas Bangladeshi workers must improve their Korean language skills.”
“We've cherished our close ties for the past 50 years, and I hope that everyone joins hands with me to start the next 50-year journey in the friendship between Korea and Bangladesh,” he said.
Korea celebrates the National Foundation Day on October 3, known as Gaecheonjeol in Korean language, which means "the day of the sky opening".
According to historical records, Gaecheonjeol celebrates the founding of the first Korean kingdom, Gojoseon, 4,356 years ago.
In Bangladesh, the embassy has organized the reception five weeks later “in order to celebrate it at the lawn ground of the embassy in more pleasant and comfortable weather.”
