Bangladesh needs to improve its business environment: South Korean ambassador

Bangladesh must take further steps to improve its business environment, South Korean Ambassador Park Young-sik said today (19 October).

Speaking at a seminar titled "Korean Investors CSR Activities and Future Together" at the Westin Hotel in Dhaka, Park called for timely visa issuance and renewal, smooth customs clearance, lower tariffs on raw materials and intermediate goods, resolution of overdue dollar payments after project completion, and permission for profit repatriation to home countries.

Park noted that South Korea and Bangladesh are negotiating a Comprehensive Economic Partnership Agreement, which, once concluded, is expected to boost Bangladesh's share in the Korean market, particularly in the readymade garments sector.

Despite existing challenges, he described Bangladesh as a promising destination for Korean investors due to its growing economy, strategic location, and large labour force.

"Bangladesh's exports to Korea have been rising steadily, but the country should diversify its export base by focusing on products such as footwear, ICT goods, leather items, light industrial products, and pharmaceuticals," he said.

The ambassador stressed the need to improve infrastructure to ensure sustainable and resilient economic growth. "Korea aims to be a key partner in Bangladesh's infrastructure development, just as it has been in the RMG sector," he said, adding that Korean companies are ready to contribute further if the government creates a more supportive environment for foreign firms.

Bangladesh currently ranks third among Korea's official development assistance (ODA) recipients, with projects spanning education, water and sanitation, health, public administration, and transportation.

Through the Korea International Cooperation Agency, Korea is also strengthening Technical and Vocational Education and Training to build skilled manpower for future growth.

Park highlighted Korea's transformation from an ODA recipient to a donor nation and its eagerness to share development experience. "Since establishing diplomatic ties in 1973, Korea and Bangladesh have deepened cooperation in trade, investment, and people-to-people exchanges. Over the last 50 years, collaboration in the RMG sector has been a driving force behind our bilateral relations," he said.

He recalled, "South Korean companies have long been partners of Bangladesh. The early collaboration between Desh Garment and Daewoo Corporation in 1979 planted the seed of Bangladesh's RMG industry. Since then, many Korean companies have played a key role in the rapid growth of the RMG sector, which now accounts for over 80% of the country's exports."

The Korean Export Processing Zone in Chattogram — Bangladesh's first privately developed, country-specific EPZ — generates around USD1.25 billion in exports and employs over 70,000 workers, symbolising the strong partnership.

Park noted that 144 Korean companies have taken part in 257 infrastructure projects worth USD 8.82 billion in Bangladesh as of April 2025. "Korean companies have contributed not only to trade and investment but also to the growth of Bangladesh's industry and infrastructure over the past decades," he said.

He also highlighted Korean investors' Corporate Social Responsibility (CSR) initiatives. "Our CSR activities go beyond philanthropy. They show our commitment to sustainable business practices that benefit both society and the environment. Today, you can see many examples of CSR being carried out by Korean investors and NGOs," he added.