[Edaily Reporter KIM JUNG YOU ] In Bangladesh, the “world’s second-largest apparel exporter,” the fallout from violent protests by garment workers against rising prices is spreading, with approximately 500 factories shutting down. In response, the Bangladeshi government has formed a “wage commission” and urged workers to return to their jobs immediately. Concerns are mounting over potential damage to South Korean companies operating large-scale factories in Bangladesh.

According to a Reuters report on the 1st (local time), the Bangladeshi government announced that day it had established a six-member dedicated Wage Commission to review wage adjustments for garment workers. Bangladesh’s garment industry accounts for more than 80% of the country’s total trade and is a key sector that provides livelihoods for approximately 4 million workers. As it serves as a critical supply chain for major Western global fashion brands, the global retail industry is also on high alert. Among South Korean apparel companies, Youngone Corporation operates a large-scale factory there.

Bangladeshi garment workers are demanding that the minimum wage—currently 12,500 taka (approximately 134,500 won) per month—be raised to 30,000 taka (approximately $245 or 322,800 won), an increase of more than 2.4 times. They argue that their real purchasing power has significantly deteriorated due to soaring food, housing, transportation, and medical costs.

Mahin Hossain, a worker participating in the protests, told Reuters, “Prices have risen far beyond our incomes,” adding, “After paying rent, we don’t even have enough left for basic necessities like food and our children’s education, making it nearly impossible to support our families.”

Despite the local government’s announcement regarding the formation of a wage commission, thousands of workers continued large-scale protests on the 1st, blocking roads in the Kashpur and Ashulia areas—industrial zones on the outskirts of the capital, Dhaka.

As protesters threw bricks and set fire to police vehicles and security posts, police moved in to disperse the crowd using tear gas and water cannons. Authorities even deployed Border Guard Battalion (BGB) personnel to the scene to maintain order.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 529 garment factories nationwide have completely halted operations due to the unrest. As a result, approximately 987,190 workers have been forced to stop working.

Ariful Haque Chowdhury, Bangladesh’s Minister of Labor and Employment, warned, “If the protests and work stoppages drag on, there will be serious delays in receiving payments from global buyers and in the timely shipment of export goods to them,” adding, “This will be a devastating blow to both manufacturers and workers.”

Major South Korean apparel conglomerates have also established a presence in Bangladesh. Youngone Corporation is a prime example. Youngone ranks first by a wide margin among Bangladesh’s top 10 exporters. Bangladesh serves as a key hub, accounting for more than half of the group’s total production. Consequently, concerns are mounting regarding potential damage resulting from the current unrest in Bangladesh.

According to statistics from Textile Focus, a local media outlet specializing in the apparel industry, more than 70% of the approximately 200 South Korean-invested companies operating in Bangladesh are in the apparel and textile sectors. It is reported that these companies employ more than 150,000 local workers.

Bangladesh’s ready-made garment (RMG) industry is the second largest in the world after China’s. It accounts for approximately 10% of Bangladesh’s gross domestic product (GDP). However, local manufacturers claim they are facing severe business difficulties due to rising raw material and production costs, chronic power and gas shortages, and uncertainty in the energy market stemming from instability in the Middle East. Yet, local companies find it difficult to accept these claims.

Salim Rahman, First Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), dismissed the demands in an interview with Reuters, stating, “(Regarding the workers’ demand for a 30,000 taka raise) it is unacceptable. Such a demand has no logical or mathematical basis.” He added, “For manufacturers already operating on thin margins and facing fierce price competition from global rivals, such a steep wage increase would mean bankruptcy.”