South Korea likely to recruit 4000 Bangladeshis this year

South Korea is expected to recruit 4,000 Bangladeshi workers, as economy of the giant Asian country is coming out of recession, said Ambassador Suk Bum Park while talking to some journalists in the city on Thursday, reports The News Today
According to the Korea Development Institute (KDI), the growth of outlook for 2010 topped a 4.2 percent expansion, indicating that Asia’s fourth-largest economy is nearing a rebound.
South Korea’s economy is expected to mark a 0.7 percent decline this year, a state-run think tank said, making a sharp upgrade on its earlier growth outlook.
According to the Korea Development Institute (KDI), the South Korean economy is to decline 0.7 percent this year, while its May report predicted a 2.3 percent fall in the economy.
Though Bangladesh’s manpower to South Korea was around 1500 in 2009 year, the number will be around 4000 this year as the robust Korean economy will require increased manpower, said Park .
Economic recession in South Korea has affected new employment opportunities and migration of Bangladeshi workers last year, Park said.
The manpower export to South Korea resumed in 2008 after a long gap as Dhaka and Seoul agreed to recruit workers under government-to-government arrangement.
In 2008, some 2500 Bangladeshis got employment in South Korea. Last year Bangladesh set a target of sending some 5,000 workers to South Korea, but economic meltdown has curtailed the employment opportunity this year.
Nearly 500,000 foreign workers are employed in different sectors in Korea with half of them are Chinese.
South Korea recruits Bangladeshi workers under government agencies of both countries to minimize migration cost and stop cheating by unscrupulous manpower agencies here.
South Korea is one of the most lucrative working places where minimum wage is 900 US dollars in the industrial sector.
Meanwhile, Hanil Kim, Resident Trade Representative, Korea Business Centre, while talking to some journalists said that South Korean entrepreneurs are expected to come up with new investment projects in Bangladesh its economy swims out of recession.
“South Korean entrepreneurs are observing the investment situation, and will decide on new investment projects in Bangladesh as its economy starts recovering,” Hanil Kim observed.
Hanil Kim said that South Korean examining new investment opportunities in ship-building, textiles and leather sectors in Bangladesh in a bid to tap the US and the EU markets.
He said that a good number of South Koran entrepreneurs eyeing Bangladesh as prospective investment destination as rising labour costs in China and Vietnam cutting competitiveness of Korean manufacturers and exporters.
Regarding trade gap between Dhaka-Seoul, Hanil invited Bangladesh to diversify its export basket to penetrate into the Korean market.
The Korean exports to Bangladesh are expected to cross one billion US dollars this year showing a widening trade deficit between the two countries.
In 2006-07 fiscal year, Bangladesh’s export to Korea was only US$79.63 million against its import of US$552.71 million during the same period showing a trade surplus of 473.08 million dollars in favour of Seoul.
Hanil also said that South Korea in late 70s trained Bangladeshis workers in the readymade garment sector that helps Bangladesh attain major success in this sector.
In 2006-07 fiscal year, Bangladesh’s export to Korea was US$ only 79.63 million against its import of US $ 552.71 million during the same period showing a trade surplus of 473.08 million dollars in favour of Seoul.
He also mentioned that rising labour cost has pushed Korean textile and clothing entrepreneurs to shift their units to low cost destination like Bangladesh that offer congenial environment and special export processing zones (EPZs).
Hanil said he would leave no stone unturned in promoting bilateral trade and laid emphasis on holding regular meetings between business leaders of the two countries.
He said South Korea also sent a proposal to Bangladesh to develop nuclear energy to improve energy situation as ROK has a vast experience in this sector.
He said Korean companies are also interested in exploring offshore natural gas as he said Daewoo has successfully explored natural gas in the coastal areas of Myanmar.
Asked about the Korean EPZ in Chittagong, Hanil said though authorities issued the licence, lack of gas connection in the EPZ has delayed the construction of infrastructures at KEPZ.
He said KEPZ will be a major industrial hub in South Asia and some 1,50,000 jobs are likely to be generated in the KEPZ with an annual turnover worth around US$ one billion.