One of the founders of Youngone that was established in Seoul in 1974, Mr. Kihak Sung came to Bangladesh in 1979, almost 35 years back. He took the initiative to start Youngone's first overseas operation at Agrabad, Chittagong. It is the first foreign direct investment (FDI) in the readymade garment (RMG) sector in Bangladesh. Youngone is credited as the first jacket exporter from Bangladesh, by employing women workforce on a big scale in the early days.
After 40 years of its continuous growth, Youngone Corporation has become the world's leading sportswear and outdoor clothing manufacturer, and has its presence in over 12 countries. Youngone Chairman, Mr. Kihak Sung is known and respected by the global apparel leaders as one of the leading visionary business figures in the industry. Back at home in Korea, very recently, he has been elected as the Chairman of Korea Federation of Textile Industries (KOFTI). KOFTI is the apex trade body of the textile & apparel industry in Korea -- combining almost all those activities that come within the operational demand of Bangladesh's three leading associations in the apparel business sector -- BGMEA (Bangladesh Garment Manufacturers & Exporters Association), BKMEA (Bangladesh Knitwear Manufacturers & Exporters Association) and BTMA (Bangladesh Textile Mills Association).
The largest operation of Youngone is in Bangladesh with a workforce of around 55,000 personnel working at its different units located in Chittagong Export Processing Zone (EPZ), Dhaka EPZ and Korean Export Processing Zone (KEPZ) in Chittagong.
Though due to some bottlenecks, KEPZ is still not fully operational even after 15 years of its foundation stone having been laid by the then (and also present) Prime Minister Sheikh Hasina in 1999, Youngone already constructed 24,00,000 square feet building areas for one facility, namely, Karnaphuli Shoes Industry (KSI). KSI has been producing shoes, garments, backpack and other materials for the industry and already started exporting its products. The KSI itself is expected to employ alone about around 30,000 workers when it would be operational fully within the shortest possible time. KEPZ has already constructed 21 kilometres paved road and 4.5 km 33 KV electric lines (additional 11 kilometres are under construction). Earth work of two kilometres four-lane road has been completed and another 2.0km about to start soon. Workers' dormitories are also planned and designed; tender would be floated soon to start the construction work.
Youngone plans to set up 10 Design Development Centres (DDCs) at KEPZ. The detail design works have been done by the country's renowned architects. At KEPZ, there would be an information technology (IT) zone over 100 acres of land, creating world class IT business hub alongwith a technical university and other educational initiatives. Also, there would be a modern, international standard healthcare facility that will include hospital, nursing institute etc. KEPZ has a plan to generate 100,000 direct and 200,000 indirect employment opportunities. If the concerned authority acts upon, at the earlier, the measures that will help resolve the issues that hinder the development of KEPZ, the country is expected to get immense benefits from world-class industrial zone that is also purported to maintaining environmental standards.
Youngone has proven track record of developing business and employment creation during the last 35 years of its operation in Bangladesh, in addition to its overseas operations which are acclaimed by global investors and customers. Smooth operation of the KEPZ, as per its plan and vision, would certainly encourage foreign investors to bring the much-needed FDI to the country and thus help the government's plan to turn Bangladesh a middle income country by 2021.
In area of corporate social responsibility (CSR) activities, Youngone is just not like any other company. Since its inception, Youngone Corporation has been contributing immensely to the society. Its CSR activities are spanned across environmental and social areas. It has set up its own Effluent Treatment Plant (ETP) from the start of its dyeing mill in Dhaka back in 1996. This mill is the only blue-sign certified dyeing and finishing operation in Bangladesh.
At the KEPZ, the sponsor company, Youngone, has planted over 1.7 million trees, through which the company earned the "Prime Minister's National Award on Tree Plantation". Due to all the trees planted, 17 large water bodies in 135 acres of land were also created. In turn, this has improved the ground water conditions of the region significantly. The company is highly appreciated by world renowned environmental bodies like IUCN (International Union of Conservation of Nature) for its unflagging commitment to developing and conserving the nature and environment.
Youngone Corporation has contributed Tk 10 million to save the threatened Royal Bengal Tigers of the Sundarbans, the world's largest contiguous patch of mangrove forests. Another donation which has received appreciation from all corners, has been for the restoration project of "Bara Sardar Bari" at Sonargaon, the ancient capital of the country, and one of the most significant heritage sites in Bangladesh. The famous Bara Sarder Bari is one of the finest examples of a residential complex of the colonial period built on an earlier Muslim settlement. It was almost in ruin and unused until its acquisition by Government of Bangladesh in 1971. In the early eighties, this property was restored and partially reconstructed by the Archaeological Department. It has been converted into the National Folk Art and Crafts Museum.
On its part, Youngone has undertaken an initiative to conserve this building in an authentic and scientific manner as a part of its CSR activities. The purpose of this initiative is to restore its original beauty and splendour. After adequate research and analysis by highly acclaimed professionals and researchers, it is observed that this two-storied complex was built in different phases. The design of the building follows the style of the early Mughal Architecture that was developed during the reign of Baro Bhuyian (renowned 12 landlords) in Bengal. The majestic façade of the residential part or its frontal building is on the west, overlooking a reflecting pond its total floor area is 27,400sft, comprising 47 rooms on the ground floor and 38 rooms on the first floor. With the generous assistance of Youngone, restoration work is going on in full swing and its expected time of completion will be in 2015. Adequate research for manufacturing of old furniture and showcasing the technique of traditional craftsmanship has been undertaken. So it will be a witness to hundreds of years of evolution of architecture, culture, life-style in Bangladesh. This will become a noteworthy initiative to bring back the glorious past of Sonargaon as an integral part of the history of "Golden Bengal", courtesy Youngone.
Workers' safety is one the highest priorities of Youngone Corporation. Apart from ensuring the safety standards in all its industrial units located in the Chittagong and Dhaka EPZs, the company has been supplying hygienic and nutritious lunch to its workers at a heavily subsidized price of Tk 2.0 per meal.
Youngone Corporation takes care of the holistic development of the employees too. Workers counselling is a useful concept first, developed by the management in Bangladesh to look after workers' emotional needs on the production floor, on behalf of the management. This service was introduced long before the importance of workers-management communication was recognised by the customers. The specially trained and skilled counselling team works closely with the workers. They teach and motivate the workers in maintaining their mental health and increase their self-esteem both in professional and family life. In all factories, separate medical centres are established to serve the employees of the company. In case of emergency, medical evacuation is made possible by its own ambulances, both on land and in the air.
The company supports a micro-finance project in Chittagong EPZ with the support from a local NGO-Mamata. It started in 2002 with 1,107 members. The membership has now increased more thirteen-fold to over 14,000.
Those who know Youngone Corporation's contribution to Bangladesh, do take note of its commitment to developing its human resource. It is a Korean company, based in Seoul, but many perceive it as a Bangladeshi company. This is so, not only because of its major operation being located in Bangladesh but also because of its whole operation being run and managed by the Bangladeshis. Management has developed and entrusted its local managerial personnel to manage its operation. In addition, its operations in China and Vietnam are also successfully developed by the Bangladeshi professionals who are continuing their support to manage those global operations.
Beyond its workforce, Youngone has funded the construction of modern school buildings in the country's impoverished northern region to help support female education with the goal of facilitating women's empowerment. Youngone has built a dormitory for female students of ethnic minority of the Garo people in Mymensingh.
Youngone Corporation's support to Bangladesh and to the world is visible through its contributions in needed times: it supported the rescue mission following the collapse of the Rana Plaza. Youngone donated Tk 10 million through the Bangladesh Export Processing Zone Authority (BEPZA) to Prime Minister's Relief Fund for the Rana Plaza victims. It was a partner of the Everest mission of Musa Ibrahim, the first Bangladeshi conqueror of the world's highest peak. It stood by the affected people of the country during the floods of 1988 and 1998, the cyclone of 1991 in Chittagong, cyclones-Sidr and Aila. Being an apparel maker, Youngone has donated, mainly in partnership with Red Cross and World Vision, over five million pieces of garments to the underprivileged people of the world.
Its outstanding work on the environmental and social areas has brought laurels for Youngone Corporation's Chairman and CEO Mr. Kihak Sung several awards, including "The Order of Industrial Merit, Gold Tower 2008", the highest honour from Korean President, "HSBC Export Excellence Awards 2009", "The Best Employer Award" by Bdjobs.com in 2008, and The Daily Star-DHL "Bangladesh Business Award" in 2005 were received by him.
This is how Youngone Corporation does business with a difference, and this is what makes Youngone Corporation an exceptional company.
The writer is Chief Executive Officer of Best Sourcing Business Advisory Services. He is a business analyst and commentator. He is the planner, researcher & host of Bangladesh's first and regular business talk-show on readymade garment sector, "RMG: Past, Present & Future" on a private television channel. E-mail address: mehdi.mahbub@bestsourcing.biz.
Business with a difference
Mehdi Mahbub | Published: August 30, 2014 00:00:00 | Updated: November 30, 2025 06:01:00
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