Korean Ambassador to Bangladesh Lee Jang-keun stressed that the cooperation in ready-made garment sector has been a symbol and model of successful bilateral ties between the two countries for the past five decades.
The envoy came up with the remarks during a meeting with Commerce Minister Tipu Munshi on Sunday.
Ambassador Lee Jang-keun appreciated the Korean companies that have made indispensable contributions to the birth and growth of Bangladesh’s RMG sector since late 1970s.
The joint venture between Korean company Daewoo Corporation and Bangladeshi company Desh Garment started in 1978, which led to the birth of Bangladesh’s RMG industry.
The Korean companies, including Youngone Corporation which operates Korean Export Processing Zone (KEPZ) in Chattogram, were not only the first foreign investors in Bangladesh RMG sector but still remains the largest foreign investors in this sector.
At present, Korea is the 5th largest foreign direct investor in Bangladesh in terms of the accumulated stock investment volume, in which, the RMG sector accounts for more than 70 percent.
Korea’s investment in Bangladesh reached over $1.3 billion in 2021.
At the meeting, the ambassador highlighted that the trade volume between the two countries reached a historic height in 2021 after almost 10 years of stagnation, said a press release issued by the Korean embassy in Dhaka.
Both sides agreed to make continuous effort to further expand the bilateral trade and diversify trade items.
Korea has been providing duty and quota-free access to its market for 95% of Bangladeshi products since 2012.
Ambassador Lee Jang-keun called for equal treatment to Korean companies in terms of export benefits such as cash incentives.
Currently, the foreign companies operating in the Export Processing Zones (EPZs) are not eligible for the benefits.
Korea is the largest investor in the EPZs across the country with 72 companies operating.