South Korea-Bangladesh
South Korea-Bangladesh Relations
South Korea and Bangladesh Maintain an Excellent Relationship that Dates to 12 May 1972 When the Country Acceded Bangladesh as a Sovereign Nation.
The two nations have been remarkable allies in various fields such as political, cultural and economic areas, and have made strenuous efforts strengthen their bilateral relationship through increased investments in trade and development cooperation.
South Korea-Bangladesh Relations
South Korea and Bangladesh Maintain an Excellent Relationship that Dates to 12 May 1972 When the Country Acceded Bangladesh as a Sovereign Nation.
The two nations have been remarkable allies in various fields such as political, cultural and economic areas, and have made strenuous efforts strengthen their bilateral relationship through increased investments in trade and development cooperation.
Investments & Trade
Many Korean companies and entrepreneurs are showing interests in investing in the ICT sector, including mobile manufacturing giant Samsung. More than 150 Korean companies have invested a total of $1.15 billion in Bangladesh, including multinational companies such as Youngone Corporation, Arirang Aviation Ltd, Woori Bank, Samsung etc. The Korea Industrial Complex Corporation (KICC) plans to build an industrial park housing 100 Korean companies. The Korean government is planning to help in building 10,000 ICT centers across Bangladesh.
Bilateral trade between Bangladesh and South Korea shows a positive curve. Bangladesh exported ~U$ 1bn worth of goods to South Korea in FY 2019-20. The top exported items being leather, woven garments, jute and stainless steel.
Bangladesh imported U$ ~96bn worth of goods from South Korea in the same period. Top imports include vegetable products, live animals, mineral products, aircraft, etc.
Source: Embassy of Republic of Kore in People’s Republic of Bangladesh, The Daily Star
Policies & ODA
South Korea is devoted to supporting Bangladesh in its endeavors of economic and social development and has undertaken a variety of Official Development Assistance(ODA) Programs. Korea supports Bangladesh through grants, soft loans and technical cooperation and the ongoing country strategy 2016 to 2020 of its development arm, KOICA, is mostly focused on health, education, transportation and ICT.
- More than 70% of the ODA for the Republic of Korea’s Country Partnership Strategy for Bangladesh in 2016-2020 will be concentrated on sectors such as Education, Transport, Water Management and Public Health and ICT
- Furthermore, Korea has assisted Bangladesh with 24 projects worth USD 1.14 Bn through the EDCF(Economic Development Cooperation Fund) of Korea Exim Bank.
- Korea aims to reinforce cooperation with Bangladesh through the improvement of the Policy Coherence for Development (PCD) and a phased introduction of the Program-based Approach (PBA) in accordance with existing guidelines and competencies of the state apparatus.
Source: OECDiLibrary, Embassy of Republic of Kore in People’s Republic of Bangladesh
Potential Sectors of Investments
The prior investment patterns of the Netherlands indicates further diversification and investments in the following sectors:
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