South Korean Ambassador to Bangladesh Park Young-sik is confident that Bangladesh will be able to overcome the issues following its LDC graduation and achieve the goals of Smart Bangladesh as a developed country by 2041.
The link between Bangladesh and South Korea is most famous for the way Seoul played a major part in advancing the readymade garments (RMG) sector during the late 70s. This all happened years after they first established diplomatic relations in 1973.
As Bangladesh prepares to transition from its status as a Least Developed Country (LDC) and aims to achieve the status of a smart nation by 2041, the Korean Ambassador to Dhaka, Park Young-sik, has expressed his country’s interest in becoming a significant partner in Bangladesh’s infrastructure development. On Tuesday, the ambassador addressed a seminar commemorating the 50th anniversary of the establishment of diplomatic relations between Korea and Bangladesh.
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Park Young-sik expressed his confidence that Bangladesh will successfully navigate the challenges following its LDC graduation and attain the status of a developed country by 2041, in alignment with the aspirations of Smart Bangladesh.
Korea’s crucial role
In a meeting, Park Young-Sik highlighted that Korea has previously played a crucial role in the Ready-Made Garment (RMG) industry of Bangladesh.
Ambassador Park Young-sik emphasized that they aspire to replicate their past success by contributing to key infrastructure projects.
Specifically, he mentioned the importance of initiatives like the Meghna Bridge Project on the Bhulta-Araihazar-Bancharampur road (R-203) and the provision of treated water from the Meghna River to the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN). These projects, currently under discussion within the framework of Joint Public-Private Partnership (PPP) Platform Meetings.
During his speech, he highlighted the importance of altering two policies to enhance productivity in the manufacturing sector.
The seminar, titled ‘Korea-Bangladesh Economic Cooperation – Sharing Development Experience and Exploring Opportunities,’ was co-hosted by the Embassy of the Republic of Korea, the Korea Trade-Investment Promotion Agency (KOTRA), and the Korea-Bangladesh Chamber of Commerce and Industry (KBCCI).
Korea’s Remarkable Journey: From Economic Powerhouse to Development Pioneer
Korea holds the position of the 10th largest economy globally and ranks as the seventh highest trading nation. It stands as the pioneer in transitioning from being a recipient of official development assistance (ODA) to becoming a donor nation.
Korea stands as a robust industrial force, boasting the planet’s foremost production capabilities in shipbuilding, semiconductors, and mobile phones.
In relation to this achievement, the ambassador stated that, ‘The Korea of today owes its existence to the aid and cooperation of the global community.’
‘Thanks to the assistance of our allies, Korea managed to construct its economy within a mere few decades. Hence, Korea is committed to reciprocating its obligations by imparting its developmental insights to fellow developing nations,’ he said while offering support to Bangladesh.
Bilateral Economic Flourishing: Bangladesh and South Korea Reap Rewards of Strong Relations
Bangladesh and South Korea have upheld amicable ties since establishing diplomatic relations on December 18, 1973.
Korean entrepreneurs ventured into Bangladesh with the intention of establishing garment factories, a number of which remain operational to this day.
According to a development report from the World Bank, the initial training provided by the Korean Daewoo Corporation in 1979 played a pivotal role in the growth of Bangladesh’s readymade garment industry, a key export commodity. This collaboration involved the partnership between the Korean corporation and Bangladesh’s Desh Ltd. They trained around 130 newly hired employees, who eventually departed Desh to initiate their own ventures within the clothing sector, thereby nurturing the industry’s expansion.
The ambassador remarked, “Following this milestone, the economic ties between the two nations have thrived in various aspects, yielding advantages for both economies.”
To begin with, the bilateral trade volume exceeded $3 billion in the previous year. Presently, Korea and Bangladesh are engaged in discussions regarding the potential negotiation of a bilateral Economic Partnership Agreement (EPA). The successful conclusion of the EPA could substantially amplify mutually beneficial trade between the two nations.
Additionally, Korea’s investments in Bangladesh presently rank as the fifth largest in terms of the cumulative amount invested.
Korea-Bangladesh Business Ties
One of the most significant recent investments involves the expansion of manufacturing sectors such as automobiles, mobile phones, and electronics through collaborative ventures with local partners.
Highlighting the strong business relationship between Korea and Bangladesh, the ambassador mentioned the pioneering Country-Specific Private Export Processing Zone (KEPZ) established in Chattogram.
Looking ahead, he emphasized Bangladesh’s trajectory towards graduating from its Least Developed Country (LDC) status by 2026 and its ambitious goal to become a developed nation under the banner of “Smart Bangladesh” by 2041. He acknowledged that both journeys present notable opportunities and challenges concurrently.
The economic outlook for Bangladesh remains highly favorable. According to the latest report by World Economics, released in June 2023, Bangladesh holds the distinction of having the fastest-growing economy in the Asia-Pacific region among 32 countries.
Additionally, the ambassador noted the promising potential for infrastructural advancements, further contributing to the nation’s growth.
Bangladesh has potential to achieve sustainable economic development
Ahead of its LDC graduation in 2026, the Bangladesh government must prioritize strengthening its foundational elements and amplifying the productivity of the manufacturing sector.
This imperative calls for a reevaluation of specific policies, a point underscored by the ambassador who accentuated the significance of modifying two pivotal policies.
“Firstly, it’s important to highlight that over 50% of mobile phones are presently being illicitly smuggled, resulting in substantial tax revenue losses for the Bangladesh government.
“Secondly, the ambassador illuminated that approximately 85% of imported cars undergo refurbishment, while fewer than 15% are either imported or domestically produced as new vehicles.
“These factors collectively erode competitiveness and cast a discouraging shadow on prospective investments. Importantly, countries such as Mongolia and Cambodia have already taken steps to prohibit the import of second-hand cars, irrespective of their status as used or refurbished,” the ambassador emphasized.
Additionally, this measure will contribute to curtailing greenhouse gas emissions.
Bangladesh holds the promise of attaining enduring economic progress. Notably, we’ve observed a threefold increase in Bangladesh’s per capita income during the past decade, he noted.
“I hold the belief that Bangladesh is poised to surmount the challenges tied to LDC graduation and attain the aspirations of transforming into a developed nation, aligned with the Smart Bangladesh vision by 2041.”
