What’s the Bangladesh-Korea bilateral trade volume now, and how can we accelerate it?
Bilateral trade has not increased since its peak of around $3 billion in 2023 due to several reasons. One main reason is the limited range of export items that Bangladesh currently ships to Korea.
At the same time, the bilateral trade data can be somewhat misleading because Korean companies supply goods that are chiefly manufactured in third countries. This trade is not fully reflected as Korea-Bangladesh trade. For example, Samsung mobile phones currently sold in Bangladesh are imported mostly from Vietnam, where Samsung Electronics has major production facilities.
Both countries can accelerate bilateral trade through Cepa, which is now under negotiation. For example, it could provide a strong impetus to increase Bangladesh’s share (currently around 5%) in Korea’s RMG-related imports. There are three FTAs involving Korea and Vietnam: a bilateral FTA, the Korea-ASEAN FTA, and RCEP. As a result, Vietnam is gaining a competitive edge in the Korean RMG market. A Cepa with Bangladesh would help improve Bangladesh’s competitiveness to this end.
When can we expect the two countries to sign Cepa?
The impending graduation of Bangladesh from Least Developed Country (LDC) status in November 2026 and the accompanying loss of Generalized System of Preferences (GSP) benefits will pose significant challenges to Bangladesh’s exports.
Since 2008, Korea has provided duty-free and quota-free market access to about 95% of Bangladeshi products under the Asia-Pacific Trade Agreement (Apta).
However, some of the Apta concessions are linked to GSP status. Once Bangladesh graduates from LDC status, a number of products that currently enjoy tariff-free market access under Apta may start facing tariffs. Therefore, both sides need to address these issues through a bilateral FTA.
Korea and Bangladesh have been negotiating a Cepa since November 2024. The early conclusion of the Cepa negotiations will largely depend on Bangladesh’s domestic preparations and its willingness to open the market. In this respect, Korea is always ready to discuss and move forward. I sincerely hope that the Cepa negotiations between Korea and Bangladesh will be finalized in the near future.
This Cepa is expected to reduce trade barriers, expand market access, and remove obstacles to foreign investment, thereby creating new opportunities for businesses in both countries and further strengthening our economic ties.
How can Bangladesh benefit from Korean technological advancement? Is there any initiative for knowledge transfer and skill development?
Businesses in both countries can promote bilateral cooperation in sectors such as footwear, ICT, light industries, pharmaceuticals, shipbuilding, the blue economy and deep-sea fishing, agriculture and agricultural machinery, climate change response, and carbon trading schemes.
Korean companies possess cutting-edge technologies, while Bangladeshi companies and entrepreneurs have strong potential to initiate new ventures. I hope that innovative investments combined with technology and capital will further flourish in Bangladesh.
Both countries signed an MoU on establishing a framework for trade and investment promotion on November 28, 2024, when Bangladesh’s Commerce Adviser met Korea’s Trade Minister in Seoul.
Under this Trade and Investment Promotion Framework (TIPF), the two countries will collaborate in areas such as industrial development, human resource development, trade and investment promotion, natural resources and energy development, technology, research and innovation, and the digital, green, and bio economy.
In addition, both nations can further discuss issues related to technology transfer and skills development in the course of the Cepa negotiations.
Your time in Dhaka saw marked improvement in trade relationships. What would be your recommendations to your successor for taking Bangladesh-Korea trade and investment cooperation to new heights?
The Embassy of the Republic of Korea in Bangladesh is dedicated to strengthening cooperation between Korean buyers and Bangladeshi manufacturers by acting as a bridge between the two sides. We facilitate regular networking events and business dialogues to share market information and industry trends, while also working closely with both governments to resolve trade and investment challenges in a timely manner.
In particular, the Embassy works closely with the Korea Trade-Investment Promotion Agency (Kotra), which serves as the commercial arm of the Embassy, to help Korean companies identify reliable partners in Bangladesh and explore new business opportunities.
We also maintain strong collaboration with major industry associations such as BGMEA and the Korea–Bangladesh Chamber of Commerce & Industry (KBCCI) to reinforce the business network between the two countries.
I would encourage my successor to further deepen these partnerships, maintain close communication with both governments and the private sector, and continuously identify new areas of cooperation that reflect evolving global and local trends.
Do you foresee more FDI from Korea to Bangladesh?
Korea is currently the fifth-largest source of FDI in Bangladesh. Recently, investment has grown in manufacturing industries such as automobiles, mobile phones, and consumer electronics, often through joint ventures with local partners.
Samsung Electronics produces consumer goods, including mobile phones, while Hyundai and Kia cars are also being assembled locally. These companies are creating high-quality jobs through domestic manufacturing.
Korean firms are interested in exploring further investment opportunities. Bangladesh continues to be a promising destination for South Korean investors, with its rapidly growing economy, strategic location, and abundant labor force.
To fully realize Bangladesh’s potential as an investment destination, it is important to further improve the business environment, particularly in areas such as timely visa issuance and renewal, smooth customs clearance, lower tariffs on raw materials and intermediate goods, prompt payment in US dollars after project completion, and the ability to repatriate profits with ease. Progress in these areas would certainly encourage more Korean FDI.
Bangladesh now stands at a crossroads. I believe that the government of Bangladesh should continue economic reforms in order to make its economy more resilient and sustainable.
Looking to the future, Bangladesh is marching towards graduation from LDC status in 2026. This means Bangladesh should focus not only on quantitative growth but also on the quality of that growth.
Such quality must be driven by innovation, knowledge, and technology, areas in which foreign companies can make substantial contributions and where Bangladesh has strong potential for further development. Korea and Korean companies are ready to accompany Bangladesh on this path.
