South Korean multinational giants Samsung and LG Electronics are set to form a joint venture and manufacture its electronic products in Bangladesh.
Commerce Minister Tofail Ahmed informed reporters of the development following a meeting with Ambassador of the Republic of Korea to Bangladesh Ahn Seong-doo at the Secretariat in Dhaka on Monday, reports a press release.
In addition to the Korean Export Processing Zone (KEPZ), investors will invest in 100 special economic zones, which was announced by Prime Minister Sheikh Hasina.
Korea will attain most benefit from the manufacturing of goods and exports once factories are established in Bangladesh.
Bangladesh’s trade with Korea currently stands at over $1.5 billion.
During the 2016-2017 fiscal year, Bangladesh exported $238.23 million worth of products to South Korea, while it imported goods worth $1.268 billion.
The press release added that Bangladesh and South Korea were working to remove trade restrictions on Bangladeshi exports, such as duties and quotas, in order to reduce this large trade deficit.
The minister has said that 200 South Korean companies have invested in Export Procession Zones (EPZ) in Bangladesh, while many other companies have expressed their interest in investing in the country.
Special economic zones will be allocated for Korean investors, which will facilitate and increase communication between businessmen of both countries.
The ambassador said that this interest among Korean investors in Bangladesh had resulted in the decision by Samsung and LG Electronics regarding the manufacturing of its products. This will increase trade and the reduce deficit between the two countries.
South Korea will provide all necessary assistance in this matter, the ambassador added.