January–February 2022 Trade Overview
Korea-Bangladesh trade in January–February 2022 posted a solid start compared with the same period a year earlier, supported by the post-pandemic recovery. Progress in global supply chain normalization and stronger import demand driven by Bangladesh's economic rebound served as the main drivers of Korea's export expansion. However, rising raw material prices and sharply higher logistics costs pushed trade values up faster than underlying shipment volumes.
January–February 2022 corresponds to the "final boom period" of Bangladesh's economy before the full-scale foreign exchange crisis later in the year. Russia's invasion of Ukraine on February 24 began driving up energy and food import costs, but this impact was not yet fully reflected in the January–February trade data. The figures from this period serve as an important baseline for comparison with the second-half 2022 FX crisis.
2022 Trade Context: Pandemic Recovery and War Risk
At the start of 2022, Bangladesh's economy was gaining momentum from COVID-19 recovery, posting GDP growth of 7.1% and making a smooth start to the year. Garment (RMG) exports surged 35% year-on-year, boosting foreign currency earnings, and overseas remittances were heading toward record highs. This demand directly underpinned Korean exports of raw and intermediate materials — synthetic resins and fabrics.
However, Russia's invasion of Ukraine on February 24 began pushing global energy and food prices sharply higher, destabilizing Bangladesh's import cost structure. For a country heavily dependent on fuel and cooking oil imports, the shock translated — with a time lag — into mounting pressure on foreign exchange reserves. The seeds of the second-half FX crisis were sown during this period.
Export Item Analysis
Korea's exports to Bangladesh maintained their traditional concentration in synthetic resins, steel, and textiles. In particular, robust demand for raw and intermediate materials driven by Bangladesh's RMG industry export boom lifted Korean exports of synthetic fibers and fabrics. Electronic parts also rose 11.2%, reflecting growing digital transformation demand.
| Item | Export Value | Share | YoY Change | Note |
|---|---|---|---|---|
| Synthetic Resins | $42M | 21.2% | +15.8% | RMG raw material demand |
| Steel Plate | $35M | 17.7% | +9.2% | Rising construction demand |
| Synthetic Fiber & Fabric | $28M | 14.1% | +18.3% | Strong garment sector |
| Machinery | $22M | 11.1% | +7.5% | Industrial equipment |
| Electronic Parts | $18M | 9.1% | +11.2% | Including telecom equipment |
| Chemical Products | $15M | 7.6% | +8.4% | Paints, adhesives, etc. |
| Auto Parts | $9M | 4.5% | +14.1% | Two-wheeled vehicle components |
| Other | $29M | 14.7% | +9.3% | Plastics, rubber, etc. |
Electronic Parts Exports in Depth: Digital Transformation Demand
Electronic parts exports in January–February 2022 reached USD 18M, up 11.2% year-on-year. While this represents some moderation from the sharp spike in Q4 2021 (+45%), the underlying demand remains solid when base effects are accounted for. With Bangladesh's government increasing its ICT sector budget allocation by 22% versus the prior year in the FY2022 budget, demand for Korean digital transformation equipment continues to expand.
| Sub-Category | Value | Share | Main End Users |
|---|---|---|---|
| Telecom & Network Equipment | $6.8M | 37.8% | Hi-tech parks, ISPs |
| Industrial Electronics | $4.2M | 23.3% | RMG factory automation |
| LED & Lighting Modules | $3.1M | 17.2% | Energy efficiency projects |
| Consumer Electronics & Home Appliances | $2.4M | 13.3% | Expanding middle-class demand |
| Other Electronic Parts | $1.5M | 8.4% | Smart city projects |
Import Item Analysis
Imports from Bangladesh continued to be dominated by apparel — both knitwear and woven garments. The combination of Bangladesh's strengthening RMG competitiveness and the Korean fashion market's broader sourcing diversification supported steady growth in garment imports. Notably, growing domestic buyer preference for products from green-certified (LEED) factories is also driving an increase in premium RMG imports.
| Item | Import Value | Share | YoY Change | Note |
|---|---|---|---|---|
| Knitwear | $32M | 36.8% | +7.2% | Korean fashion demand |
| Woven Apparel | $25M | 28.7% | +9.8% | Casual and innerwear |
| Leather Goods | $8M | 9.2% | +5.1% | Handbags and footwear |
| Fishery Products | $6M | 6.9% | +12.5% | Shrimp-centered |
| Jute & Jute Products | $5M | 5.7% | +3.2% | Eco-friendly packaging materials |
| Other | $11M | 12.7% | +8.9% | Pharmaceutical ingredients, etc. |
Foreign Exchange Reserve Trends and Trade Risks
Bangladesh's foreign exchange reserves stood at approximately USD 45B at the start of 2022, appearing stable. However, following the Ukraine war, surging energy and food import costs caused reserves to fall sharply quarter by quarter. During this process, delays in opening import letters of credit and a widening gap between official and unofficial exchange rates began creating difficulties in trade payment collection for Korean exporters.
| Period | FX Reserves | vs. Previous Quarter | Key Development |
|---|---|---|---|
| January 2022 | $45.0B | — | Stable year-start |
| March 2022 | $43.8B | −$1.2B | Ukraine war impact begins |
| June 2022 | $39.5B | −$4.3B | LC opening restrictions begin |
| September 2022 | $35.9B | −$3.6B | IMF bailout negotiations commence |
| December 2022 | $33.7B | −$2.2B | Import regulations tightened |
| March 2023 | $31.2B | −$2.5B | IMF $4.7B bailout approved |