The South Korea reiterated their commitment to invest in Myanmar

The Embassy of the Republic of Korea (ROK) has issued a statement reaffirming South Korea’s commitment to investing in Myanmar.

The statement issued last week reiterated that the embassy has not heard any official news of South Korean companies considering relocating from Myanmar to neighbouring countries.

The statement was issued following the emergence of news reports in Bangladesh reporting that a South Korean developer of industrial zones active in Myanmar intends to do the same in Bangladesh, and that South Korean companies would be relocating there.

The embassy’s statement went on to say that it has not heard of any South Korean company or factory operating in Myanmar considering relocation to neighboring countries.

In added that, on the contrary, the embassy has been receiving an increasing number of inquiries about Myanmar from prospective South Korean investors.

The Bangladeshi news reports last week claimed that South Korean businesses in Myanmar wanted to move to Bangladesh, based on statements by the Bangladesh Economic Zone Authority (BEZA) and Korea Industrial Complex Co Ltd (KIC). 

According to Bangladeshi papers, about 100 South Korean businesses in Myanmar wanted to move to Bangladesh due to shortcomings in industrial zones in Myanmar. 

“South Korean businesses in Myanmar will not be moving their operations to Bangladesh. There are no cases at all of South Korean investors returning MIC permits and moving out of Myanmar. In fact, interest among South Korean investors in Myanmar has been mounting,” U Thant Sin Lwin, secretary of the Myanmar Investment Commission (MIC), said last week when approached for a response about the reports.

At present there are already two industrial zones with South Korean participation in Myanmar: the Korea-Myanmar Industrial Zone established by the Myanmar and South Korean governments, and another set up by a private company, U Thant Sin Lwin said.

The South Korean embassy in Myanmar said investment between the South Korea and Myanmar has been steadily increasing and is expected to continue rising.

In particular, the state visit by South Korea’s President Moon Jae-in to Myanmar in September created significant momentum for further investment and trade between the two countries. Moreover, the upcoming ASEAN-ROK Commemorative Summit in Busan, South Korea will be another occasion to encourage South Korean entrepreneurs to give serious consideration to the many investment opportunities Myanmar can offer, the embassy said.

Myanmar and South Korea inked a series of agreements on economic and infrastructure development during President Moon’s visit to Myanmar in September, including an agreement for a US$1 billion loan to Myanmar for economic development. 

South Korea is Myanmar’s sixth-largest foreign investor and it has to-date invested US$3.9 billion in 179 businesses in Myanmar, according to the Directorate of Investment and Company Administration (DICA).

(The Myanmar Times: https://www.mmtimes.com/news/south-korea-reiterates-commitment-investing-myanmar.html )

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