Bangladesh at a Glance
The People's Republic of Bangladesh is a South Asian nation of approximately 170 million people situated along the Bay of Bengal coast. With the world's eighth-largest population concentrated in just 147,570 km², Bangladesh ranks among the most densely populated countries on Earth. The capital, Dhaka, is a megacity of 22 million residents and serves as the political, economic, and cultural hub — and the primary gateway for Korean businesses entering the market.
Since gaining independence from Pakistan in 1971, Bangladesh has transformed from one of the world's poorest nations into a South Asian economic growth engine. The country received the UN's recommendation for LDC (Least Developed Country) graduation in 2021 and is set for formal graduation in 2026. The official language is Bengali (Bangla), with English widely used in business and legal contexts.
Geography, Demographics, and Social Structure
Bangladesh is the world's largest delta nation, formed atop the Ganges-Brahmaputra-Meghna (GBM) delta system. Approximately 80% of the country consists of alluvial plains, making it ideal for agriculture but structurally vulnerable to monsoon flooding (June-September) and cyclones. The country is divided into eight administrative divisions, with Dhaka, Chittagong, Sylhet, Rajshahi, Khulna, Barisal, Rangpur, and Mymensingh as the major cities.
| Item | Details | Notes |
|---|---|---|
| Official Name | People's Republic of Bangladesh | |
| Capital | Dhaka | Pop. ~22 million |
| Area | 147,570 km² | ~2/3 of the Korean Peninsula |
| Population | ~170 million | World #8 (2025) |
| Pop. Density | 1,150/km² | Highest globally (excl. city-states) |
| Official Language | Bengali (Bangla) | English in business |
| Religion | Islam 90%, Hindu 9% | Secular constitution |
| Currency | Taka (BDT) | 1 USD ≈ 120 BDT |
| Time Zone | UTC+6 | 3 hours behind Korea |
| Government | Parliamentary democracy | Prime Minister-led |
Bangladesh's demographic structure is in the "demographic dividend" phase. Those under 30 constitute approximately 55% of the total population, with over 2 million new entrants joining the labor market annually. The literacy rate has risen steadily to about 75%, with improved female education participation serving as a critical driver of social development. Urbanization stands at approximately 40% and is increasing by 3% annually, creating rapidly expanding demand for housing, transportation, and infrastructure.
Economic Profile and Key Indicators
As of 2025, Bangladesh records a GDP of approximately USD 460 billion with per capita GDP of USD 2,750 (PPP USD 7,800). The country has maintained annual growth rates above 6% over the past decade, earning its place in Goldman Sachs' Next Eleven (N-11) group. The World Bank projects Bangladesh to become a top-25 global economy by 2035.
| Indicator | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25(E) |
|---|---|---|---|---|---|
| GDP Growth | 6.9% | 7.1% | 6.0% | 6.1% | 6.5% |
| GDP per Capita | $2,227 | $2,457 | $2,450 | $2,600 | $2,750 |
| Exports | $38.9B | $52.2B | $52.0B | $55.0B | $58.0B |
| Imports | $56.0B | $72.5B | $64.0B | $62.0B | $65.0B |
| Remittances | $24.7B | $21.1B | $21.5B | $23.0B | $24.0B |
| FX Reserves | $46.0B | $33.5B | $24.0B | $22.0B | $21.0B |
| Inflation | 5.6% | 6.2% | 9.0% | 7.5% | 6.8% |
Key Industries
Bangladesh's economy is built on five pillar industries: Ready-Made Garments (RMG), IT and BPO, pharmaceuticals, agriculture, and construction/infrastructure. While the RMG sector accounts for a structurally concentrated 84% of total exports, the government is pursuing industrial diversification with a focus on expanding ICT, pharmaceutical, and light manufacturing exports.
Infrastructure and Mega Projects
Infrastructure development has lagged behind Bangladesh's rapid economic growth, prompting large-scale government-led investment. As of 2024-2025, over 100 mega projects are underway with a combined investment of approximately USD 60 billion, spanning transport, energy, ports, and special economic zones — areas with expanding opportunities for Korean companies.
Korea-Bangladesh Relations and Bilateral Trade
Korea and Bangladesh have maintained diplomatic relations for over 50 years since establishing ties in 1973. Bilateral trade reached approximately USD 2.5 billion in 2024, with Korea ranking as Bangladesh's ninth-largest import source and a major foreign investor. Key Korean exports include textile raw materials and fabrics, steel, machinery, and electronic components, while Korea imports finished garments from Bangladesh.
| Item | 2022 | 2023 | 2024 | Notes |
|---|---|---|---|---|
| Total Trade | $2.45B | $2.28B | $2.51B | Recovery trend |
| Korean Exports | $1.72B | $1.59B | $1.75B | Textiles, steel, machinery |
| Korean Imports | $730M | $690M | $760M | Finished garments |
| Korean FDI (cumulative) | $850M | $920M | $1B+ | Manufacturing focus |
| Korean Companies | ~350 | ~370 | ~400 | EPZ-concentrated |
| Korean Residents | ~5,000 | ~5,200 | ~5,500 | Dhaka-concentrated |
Business Environment and Investment Considerations
Bangladesh ranked 168th out of 190 countries on the World Bank's Doing Business index (2020, final publication), indicating that the business environment has not yet reached developed-market standards. However, rapid improvements are underway through BIDA (Bangladesh Investment Development Authority) one-stop services, EPZ and economic zone expansion, and digitalization initiatives.
Outlook and Implications for Korean Businesses
Bangladesh is emerging as one of the primary beneficiaries of the "China+1" strategy, positioning itself as a key alternative production base amid EU and US supply chain diversification away from China. While the scheduled 2026 LDC graduation poses the challenge of reduced GSP/EBA tariff preferences, this is expected to accelerate industrial upgrading and institutional reform.
For Korean companies, Bangladesh represents far more than a low-cost production base — it is a growing consumer market of 170 million people and a strategic gateway connecting South Asia, the Middle East, and Africa. Successful entry requires understanding local business practices, securing trustworthy partners, and adopting a medium-to-long-term investment perspective. Leveraging KOTRA Dhaka's trade office and BIDA's investment support services is strongly recommended.