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Korean cos to invest $ 500m in EZ

They moved to Bangladesh as Myanmar failed to provide infrastructure

FE REPORT | November 05, 2019 00:00:00

South Korean businesses have expressed the interest to establish an industrial park in Bangladesh's Economic Zone (EZ) to set up factories for manufacturing apparel, leather products and ornaments.

A developer company of the East Asian country, Korea Industrial Complex Company Limited (KIC), has requested Bangladesh Economic Zones Authority (BEZA) to initially allocate 400 acres of land in an EZ.

Around 100 South Korean companies will set up factories in the proposed industrial park, which will likely to fetch an investment of US$ 500 million.

To this effect, a meeting was held at the BEZA headquarters in the city on Monday, a statement said.

BEZA executive chairman Paban Chowdhury, Chief Executive Officer of the KIC Baeho Cho and other officials were present at the meeting.

According to the Korean delegation, the 100 Korean companies became interested to invest in Bangladesh after the Myanmar authorities failed to provide them with all required infrastructure in two industrial parks (IPs) there.

The KIC officials said the developer company started establishing two IPs in Bago and Moan regions of Myanmar in 2013.

But the delay in establishing utility services like electricity and water has disheartened the Korean investors, prompting them to shift investment to another destination, they said.

In addition to setting up industrial units, the Korean entrepreneurs would likely to establish a modern residential area in the EZ.

The KIC delegate sought for all required support from the BEZA to develop the infrastructure as well as providing the utility services.

The KIC chief Baeho Cho said they want to start the construction work as soon as they obtain the land and other approvals from the government and the BEZA as well.

In response, Mr Paban Chowdhury said BEZA is determined to establish sustainable and environment-friendly industries by giving all required support to the investors.

"For this reason, countries like China, Japan and India are setting up EZs in Bangladesh," he said.

The proposed investment of Korean entrepreneurs will create a new horizon in the Foreign Direct Investment in Bangladesh.

The authority is waiting to help the Korean investors with all out support, said the statement.

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