The Korea Economic Processing Zone (KEPZ) in Chattogram, the first country-specific private Export Processing Zone, is serving as a symbol of the business collaborations which Korea and Bangladesh have cultivated over the last fifty years since December 18, 1973 when the bilateral diplomatic ties were established. The KEPZ is currently exporting approximately USD 1.25 billion and employing more than 70,000 workers.
Substantial relations between Korea and Bangladesh began with the inception of Bangladesh's RMG industry. 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 great contributions to the rapid growth of Bangladesh's RMG industry, which accounts for over 85% of the country's exports.
Korea is currently the fourth largest FDI investor in Bangladesh. Korea's investment has been expanded to manufactur- ing industries thanks to a recent increase in investment in automobiles, mobile phones, and consumer electronics through joint ventures with local partners. Samsung Electronics manufactures consumer electronic goods, including mobile phones, in Narsingdi, while Hyundai cars are being assembled at the plant at the Kaliakoir Hi-Tech Park from 2023. These companies are creating good quality of jobs through domestic manufacturing.
On the auspicious occasion of visiting the KEPZ, Korean Embassy would like to reiterate Korea's willingness to invest- ment. Firstly, Korea is a country making constant and persistent investments. Compared to other countries making intensive investment in a specific period, Korean companies are continuously making investment without any interruption. Secondly, Korean companies are investing in various sectors from garments to electronic goods and cars. Some Korean companies are trying to introduce new technology which is desperately needed for Bangladesh's sustainable economic growth after the graduation from the Least Development Country Status in 2026.
Bangladesh has a big potential for development as its economy has been growing fast with its growth rate recording over 5% in the last 20 years. And its graduation from the LDC in 2026 will attract essential foreign capital required for the sustainable economic development. Korea aspires to become a vital partner in Bangladesh's economic development, just as we have done in the RMG sector.
Firstly, Korea wants to establish long-term and strategic relations. Korea neither seeks short-term gains nor makes any empty promise that cannot be easily kept. The Economic Partnership Agreement, under the discussions between two countries, will be a foundation for such a strategic and long-term relationship. This EPA is not just an extension of the GSP benefits that Korea is currently offering to Bangladesh. It will substantially upgrade bilateral trade and invest- ment in mutually beneficial ways.
Secondly, Korea is trying to participate in Bangladesh's infrastructure development. Currently, numerous projects are under discussions through the Economic Development Cooperation Fund, soft loans from the Korean government, or the Public-Private Partnership mechanism. The Embassy anticipates that the ongoing projects will make smooth progress and greatly contribute to the development of infrastructure in Bangladesh. Korean companies do not delay any project intentionally or inflate the cost of the project deliberately, and they focus on timely completion.
Thirdly, both countries can promote bilateral collaboration in new areas. Footwear, light industries, ICT, pharmaceuti- cals, shipbuilding, blue economy and deep-sea fishing, agriculture and agricultural machinery, green house & carbon trading scheme are potential areas. Korean companies have new technology, while Bangladeshi companies can start new businesses.
Lastly, the improvement of a business-friendly, predictable and stable environment should be one of the top priorities among the interim government's tasks in order to attract more foreign investment. Korea is fully committed to continu- ing our long-standing cooperation with Bangladesh. The Korean Embassy is looking forward to engaging in further discussions with the interim government on this matter.
