Youngone Corporation CEO Kihak Sung receives state recognition

Kihak Sung, the Chairman and Chief Executive Officer (CEO) of the renowned South Korean conglomerate Youngone Corporation, has spent more than half of his 78 years building a business legacy in Bangladesh. A pioneer of the country’s readymade garment (RMG) sector, Sung was among the few who were part of the industry when it first emerged in the 1980s.

Remarkably, he was also the first foreign investor to step into Bangladesh’s apparel sector during its early years. What began as a modest venture has since evolved into a vast industrial empire, playing a transformative role in the country’s economy.

Now, the Government of Bangladesh has honoured Kihak Sung with honorary citizenship—a rare and significant recognition of his long-standing contributions. He was awarded this distinction for his pivotal role in the expansion of Bangladesh’s industrial sector, the creation of large-scale employment opportunities, and his substantial contribution to foreign currency earnings.

Kihak Sung’s journey in Bangladesh reflects not only personal success but also the broader story of industrial development in the country. From the early days of uncertainty to building globally competitive production facilities, his leadership has helped shape the RMG industry into what is now the backbone of Bangladesh’s export economy.

Chief Adviser to the interim government Muhammad Yunus handed over this honour to Kihak Sung at the inauguration of the Bangladesh Investment Summit on Wednesday.

People form the interim government who were involved with the process of coffering this honour to the Korean businessman said investment atmosphere must be improved and made easier to attract foreign investment. Besides, it is also necessary to make the journey of foreign investors safe and smoother, as well as foreign investors would felt honoured once they woulbe be offered proper recognitions and honours.

Bangladesh Investment Development Authority (BIDA) is the main organiser of the event. BIDA wants to present the foreign investors of Bangladesh as ‘investor ambassador’ to the world. For this reason, they moved to recognise Youngone Corporation chairman Kihak Sung as the investor ambassador of the country through offering him the honorary citizenship. BIDA thinks, with the help of Kihak Sung many investors from various countries including South Korea will bring large investments or work to bring investments in Bangladesh.

It has been proved that the thoughts of BIDA are not irrational. A delegation of interested investors from South Korea participated in the investment summit this year. Kihak Sung brought these investors to Bangladesh at his initiative. Visiting Korean delegation met Chief Adviser Muhammad Yunus at the state guest house Jumana on Monday and pledged large investments in Bangladesh.

Kihak Sung is often referred to as the mogul of Asia’s garment empire. Under his leadership, Bangladesh witnessed major innovations in clothing manufacturing. Industry insiders in the country’s garment sector say that Kihak Sung played a pioneering role in introducing and popularising the production of jackets in Bangladesh for high-demand markets like the United States, Canada, and Europe. His factory was the first in the country to manufacture such jackets.

By employing highly paid professionals across various levels of jacket production, Kihak Sung helped establish technical expertise in Bangladesh. Inspired by his success, other Bangladeshi garment companies also entered the jacket segment, eventually capturing a significant share of the global market.

Kihak Sung’s beginnings were modest. A South Korean national, his father owned a cold storage business in Korea. But from an early age, Sung decided not to follow in his father’s footsteps. After completing his education, he underwent 18 months of mandatory military training in South Korea. Following that, at the age of 25, he began his career as a sales executive at a garment factory.

It was during this time that he became deeply involved in the garment sector. His job allowed him to interact with numerous foreign buyers, through which he gained valuable industry insights. He would later leverage this knowledge and network to become a successful entrepreneur in his own right.

In the 1980s, Bangladesh’s ready-made garment (RMG) industry began to benefit from quota-free access to the global market. Sensing an opportunity, South Korean businessman Kihak Sung came to Bangladesh in May 1980, aiming to tap into this emerging export potential. He had already visited the country several times in 1979, but it was in 1980 that he arrived with a clear intention: to establish a manufacturing base.

Kihak Sung went on to establish Youngone Bangladesh Limited, partnering with several Bangladeshi entrepreneurs. In its early days, the factory employed just over 200 workers. Skilled professionals from Korea were initially brought in to train the Bangladeshi workforce. Today, that small venture has grown into one of the largest industrial employers in the country, with over 73,000 people working in Youngone’s various factories in Bangladesh.

One of Kihak Sung’s most ambitious contributions is the establishment of the Korean Export Processing Zone (KEPZ) in Anwara, Chattogram. As the only foreign individual investor to undertake such a large-scale initiative, he founded KEPZ under Youngone’s leadership. The zone now houses 48 factories, the majority of which are dedicated to garment production, while others manufacture shoes, bags, and various accessories.

Beyond KEPZ, Youngone operates several other factories across Bangladesh. In total, the company’s facilities provide employment to approximately 250,000 people, making it one of the largest private sector employers in the country.

According to data from the National Board of Revenue (NBR), Youngone Corporation exported goods worth USD 862.4 million from Bangladesh in the fiscal year 2023–24. Of this, USD 806.4 million came from garment exports alone. The remaining USD 56 million came from shoes, bags, and other non-apparel items. Notably, USD 380 million of the company’s total exports came directly from its factories located within KEPZ.

This reporter visited the Korean Export Processing Zone (KEPZ) in Anwara, Chattogram, last Monday, as part of a delegation of foreign investors and representatives from various organisations attending the investment conference. Built across approximately 2,500 acres, this industrial zone—founded by South Korean entrepreneur Kihak Sung—has evolved into a full-fledged industrial empire.

KEPZ stands out not only for its scale but also for its commitment to sustainability and modern industrial practices. All factories within the zone are equipped with environment-friendly and state-of-the-art facilities. Remarkably, 52 per cent of the total land area is covered by forests and reservoirs, making KEPZ a rare example of an industrial hub surrounded by greenery.

Beyond factories, the zone includes modern housing facilities for officials, a clean and orderly layout, and community infrastructure such as hospitals and recreational spaces. An artificial lake has been created to enhance the ecological environment of the zone. The overall cleanliness and organization of KEPZ left a strong impression on visiting delegates.

Managed by Youngone Corporation, KEPZ is dominated by factories owned and operated by the company—48 in total. In addition, two factories are currently rented to foreign buyer companies.

Youngone’s vision for KEPZ goes beyond industrial production. A 100-bed hospital has already been built for workers within the zone, and construction is underway for a new 600-bed hospital and a textile institute. Company officials also indicated plans to attract further foreign investment into the zone. However, for years, unresolved land-related issues had held back such progress.

Those challenges appear to have been overcome. According to Youngone officials, the interim government resolved the longstanding land disputes in February this year, clearing the way for new investment opportunities in this model industrial zone.

According to sources at Youngone Corporation, the company operates factories in seven countries – Bangladesh, India, Vietnam, Ethiopia, Uzbekistan, El Salvador and South Korean, employing 95,000 people. The company operates 70 per cent of its business in Bangladesh.  

Youngone Corporation is listed in Seoul Stock Exchange and released IPO in 1988. The company had 3.60 trillion Korean Yuan (approximately Tk 2.91 trillion) in revenue globally, according to the company’s fillings to Seoul Stock Exchange.

This report appeared in the online edition of Prothom Alo and has been rewritten in English by Farjana Liakat and Hasanul Banna