We are concerned that the Korean Export Processing Zone (KEPZ) in Chittagong is being undermined by land-grabbers and that this is hampering investment at the site. The government must act firmly to support the KEPZ in evicting the local influential people who have grabbed parts of its site. There is no excuse for the long delays by the district administration and police in helping KEPZ retrieve land which has been encroached and occupied by land-grabbers. The delays are deterring investors and holding back the zone from developing further. Since 1999, the KEPZ has fully developed around a third of the 2,500 acre site. There are now 22 different factory buildings and industries supported by 24km of roads, employing many thousands of local workers. Under the master-plan, the zone expects to be able to provide jobs to at least 100,000 local people when fully implemented. The next crucial stage of development, which plans to take employment levels over 50,000 within two years, is being put in jeopardy by the failure to sort out the land-grabbing problem. Major manufacturers with factories at the site, such as Youngone, are unable to expand or invest further without legal settlement of land issues. The government has not helped matters by raising speculation last year that it might transfer some of the yet-to-be developed land. EPZs are a vital plank of national policies to attract investment and create industrial jobs. They must be supported in their efforts to expand free from bureaucratic interference and the activities of land-grabbers.