StanChart, Korean businesses forge paths for increased investments

Standard Chartered, the Embassy of the Republic of Korea, Bangladesh Investment Development Authority (BIDA), Bangladesh Bank, and Korea-Bangladesh Chamber of Commerce & Industries (KBCCI) have recently organised a dialogue on 'Thrive in Bangladesh: Actionable insights and solutions for Korean businesses.'

The event brought senior stakeholders from the private sector, chambers of commerce, think tanks, and government together to discuss actions that can be taken to promote and drive Korean business activity in Bangladesh, says a press release.

The event focused on driving collaboration and facilitating the development of infrastructure, trade, investment flows, and sustainable finance. As one of the largest foreign investors in Bangladesh, Standard Chartered plays a leading role in attracting foreign trade and investment.

Speaking at the event, Naser Ezaz Bijoy, Chief Executive Officer, Standard Chartered Bangladesh, said, "As the fourth largest source of Foreign Direct Investment (FDI) for Bangladesh, South Korea makes significant contributions, particularly in trade, investment, landmark infrastructure projects, and manufacturing. Standard Chartered has been a vital stakeholder in the flourishing partnership between our two nations. Yet, the potential for further diversification remains vast. Despite the existing challenges, I firmly believe that by effectively managing exchange rate volatility and leveraging arbitrage opportunities, we can fortify the economic prospects for both Bangladesh and Korea."

Park Young-sik, Ambassador of the Republic of Korea, stated, "Korea aims to establish long-term, strategic relations with Bangladesh, focusing on sustainable gains and realistic commitments. Current discussions involve projects supported by the Economic Development Cooperation Fund, soft loans from the Korean government, and public-private partnerships. While Bangladesh offers competitive labour costs, technology is increasingly important. To attract foreign investors, Bangladesh must improve its business climate. Pursuing qualitative economic growth requires transparency, accountability, and collaboration between the government and the private sector."

Mohsina Yasmin, Executive Member (Investment Promotion) of Bangladesh Investment Development Authority (BIDA), said, "BIDA and Standard Chartered aim to position Bangladesh as a premier investment destination by combining Standard Chartered Bank's networking with BIDA's investment facilitation efforts."

Samsoo Kim, Director General,Korea Trade-Investment Promotion Agency (KOTRA), said, "To attract more Korean investment in manufacturing, it is crucial to simplify public laws, streamline accounting and tax processes, and ensure consistent tax regulation application. Additionally, reducing delays in licensing, administrative procedures, and customs clearance will make Bangladesh more appealing to investors. Addressing these issues will foster a favourable business environment, encouraging increased Korean investment and driving growth in Bangladesh's manufacturing sector."

Abu Saleh Mohammad Shahab Uddin, Director, Foreign Exchange Investment Department, Bangladesh Bank, said, "Korea ranks as Bangladesh's fourth largest investment source country in terms of FDI stocks, with many Korean firms eager for increased involvement in major infrastructure projects. The central bank's June 2023 circular permits all investors, regardless of location, to retain equity funds in foreign currency to mitigate exchange losses. Korean firms can establish project-adjacent branches and transfer funds from their headquarters as per BIDA guidelines."