Seeking support from the government and the people of the country as well, Kihak Sung, chairman of Youngone Corporation of Korea, said the Korean EPZ (KEPZ) will attract foreign investment of $1.2 billion and create jobs for 3,03,000 locals by the year 2020. But any move by the government to take back 2,000 acres of land acquired by the KEPZ will send negative message to foreign investors and discourage foreign investment largely, he added. “Lots of development at KEPZ has been made so far and 67 percent of land earmarked for industries has already been prepared for setting up factories. We have invested $250 million there. So the allegations that the authority has failed to develop the zone is baseless,” said Kihak Sung, chairman of the Korea-based multinational company that owns the KEPZ. “We are not sitting idle. Lots of development has been made so far. We did not violate the rules, nor any terms and condition,” said the Korean entrepreneur who has made his presence in Bangladesh for over 35 years. There is no scope for misunderstanding that the KEPZ lands have been lying unused, he said while his attention was drawn to a media report that the government has decided to take back 2,000 acres of land for not being able to draw FDI. “KEPZ is protected by law. We developed the entire land complying with the law of the land. Legally, the KEPZ land cannot be taken back. Any such move, if taken, will certainly affect the country. It will be self-damaging,” Kihak Sung told daily sun in an interview at Youngone’s Dhaka office on Tuesday. Youngone is a global listed company and 30 percent of its investment is from the US and European countries, he said, adding that the market capital of the company is $3 billion. If Youngone’s investment faces setback here, then definitely it will bear a worrisome message to foreign investors, he added. “The largest investment I have made in Bangladesh and I want to see more and more FDI comes here because I like this country and its people,” Kihak Sung said, adding, “I make profit to reinvest here, which is gradually increasing employment scope.” “Around US$ 250 million has already been invested at the KEPZ in Chittagong. Youngone has set up industries in Vietnam investing $150 million. This fund could be invested in Bangladesh, but it was not possible for various bureaucratic obstacles,” he said. Asked about the FDI prospect and problems in Bangladesh, Kihak Sung said, “If Bangladesh truly wants FDI, it can explore it as the country has huge prospects. The overall environment should be made industry-friendly and everyone should realise that more foreign investment is essential for the country to employ more people.” Elaborating overall development of the zone, he said, the KEPZ will have a total 1 crore square feet (sft) of floor area for setting up factories under a modern and well-equipped greenery environment being developed as a comprehensive industrial site. Over 67 percent of the land earmarked for industries has already been developed and a total of 30 lakh sft of floor area has been completed so far, while 30 lakh sft of floor area and related infrastructure will be completed by the 2016-17 and another 40 lakh floor area by 2018-19. The development of the site, over 2,492 acres of land was made as per the terms and conditions of the Environment Clearance Certificate issued by the Ministry of environment, he mentioned. As per the certificate, 33 percent (822 acres) land should be kept green with plantation, while 19 percent (470 acres) as open area and water bodies. Forty-eight percent (1200 acres) of land should be used for factories, utilities, roads, accommodations, hospitals, schools and other supporting facilities, Kihak mentioned. After keeping aside the area to be used for roads, utilities and supporting facilities, which is 30 percent of usable land, only 840 acres of land remain for industrial use, Kihak Sung said, adding, “We will need two dry seasons to complete development of the remaining area of 400 acres.” “We did not violate the terms and condition. About 26 kilometres roads have been constructed and installation of 16km 33KV and 11KV electric line has been completed. Two units of workers’ welfare centre are near completion and another two units are under plan,” said the Korean entrepreneur. “Thirty global giant investors sat with us. They wanted to invest here and sought land, but it was not possible as the district administration is yet to give ownership of the land through completing mutation process,” he said. The KEPZ authority acquired land, a barren land, from the government in 1999 by paying Tk 68 crore and its possession was handed over by the deputy commissioner of Chittagong on August 3, 1999, but it took ten years to get environment clearance in 2009. Karnaphuli Shoes Industries Limited is the first company that set up factory in KEPZ on October 2, 2011, said Kihak Sung, who is also Chairman of the Korea Federation of textile Industries (KOFOTI). A number of industries are now in operation there. Comparing the investment environment of Bangladesh to Vietnam, he said, “Doing business in Vietnam is quite easier. In Hanoi, we can make 90 percent concentration on business while in Dhaka it is 20 percent as most of the time we need to use for government procedures.” “We got land free of cost in Vietnam and needed no money to construct roads and other utility facilities as everything was arranged by the authority. We invested $150 million to set up three industries there,” Kihak Sung mentioned. He also said, “Bangladesh has a very dedicated workforce, more communicative, especially in terms of efficiency in English. People are hard working and very suitable for mid-level management. Considering all these, I can say Bangladesh has good future if foreign investors are treated appropriately.” “But still there are some challenges. Connectivity is a major challenge for which workers face problems in reaching workplaces in time. Some other factors, I should say local factors are there which also decrease productivity. The government should take initiative in improving connectivity.” “South Korean company Samgsung came at KEPZ in 2011 to invest here. LG was also interested. Thirty major Korean companies also wanted to invest here. Samsung has now moved away to Vietnam,” he added. At present, Youngone is employs over 70,000 workforces at CEPZ, DEPZ and KEPZ in Bangladesh. About his business career, he recalled that after completing his studies in 1970, he started the company in 1974. “I borrowed $700 from my aunt to start the company. Now Youngone has industries in five countries in the world – Korea, Bangladesh, China, Vietnam and El Salvador. But the biggest investment is made in Bangladesh.” The company exports goods worth $2 billion annually and its major markets are USA, Europe and Asia, Kihak Sung said, adding: “Korea is a prospective market for Bangladesh. I persuade the Korean government to allow Bangladesh duty-free access of Bangladeshi products to that country and Bangladesh now enjoys the facility,” said the Korean entrepreneur. While his attention was drawn about the government’s initiative to allow a number of economic zones, he said, whether it is EZ or EPZ, what is needed to attract FDI is proper support from the government. “We are the first investor in readymade garment sector in Bangladesh. We started here in 1980 and Youngone is the first company that employed female workers. The first industry at the Dhaka EPZ is ours. We purchased many of failed factories and upgraded them to modern units.” “The land at KEPZ has been developed in a greenery manner. The entire area was a barren land and we planted 20 lakh trees, developed lakes and other supporting facilities for making the zone comfortable for foreign investors,” Kihak Sung said.
