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Korea-Bangladesh Trade Status Through May 2022: A Midyear Checkpoint

Trade Overview Through May 2022

Cumulative Korea-Bangladesh trade for January to May 2022 reached $742M, up 11.5% from the same period a year earlier. Exports rose 13.2% to $481M, while imports increased 8.4% to $261M. As Bangladesh's economic recovery continued, demand for Korean raw materials and industrial goods remained firm, but early signs of tighter import controls by the Bangladesh Bank began to surface from May onward.

$481M
Cumulative Exports
+13.2% YoY
$261M
Cumulative Imports
+8.4% YoY
+$220M
Trade Balance
Widening Korean surplus
$742M
Total Trade
+11.5% YoY

Monthly Export Trend

Monthly export performance from January through May shows a peak of $108M in March, followed by a mild pullback in April and May. This appears to have been driven less by global supply chain disruption and more by delays in opening LCs (letters of credit) in the Bangladesh market.

Monthly Trade Performance, January-May 2022 ($M)
MonthExportsImportsTrade BalanceTotal Trade
January$95M$42M+$53M$137M
February$103M$45M+$58M$148M
March$108M$52M+$56M$160M
April$92M$60M+$32M$152M
May$83M$62M+$21M$145M
Cumulative$481M$261M+$220M$742M

Shifts in the Export Product Mix

As of the cumulative May tally, synthetic resins remained the leading export item, while steel plates posted particularly strong growth. A key driver was increased demand for construction materials following Bangladesh's expanded infrastructure investment policy.

Top 3 Export Items
Synthetic Resins$102M (21.2%)
Steel Plates$92M (19.1%)
Synthetic Fibers and Fabrics$68M (14.1%)
Fast-Growing Items
Steel Plates+22.5% (highest growth)
Machinery+15.3%
Electronic Components+13.8%

Signals of Foreign Exchange Risk

01
LC Processing Delays
From May, the average processing period for LC openings at Bangladeshi commercial banks lengthened from 15 days to 25 days. Tight dollar liquidity appears to be the main cause.
02
Declining FX Reserves
Bangladesh's foreign exchange reserves fell from $46B at the start of 2022 to $42B in May. A sharp rise in energy import payments was a major factor.
03
Signs of Tighter Import Controls
The central bank was considering higher LC margin requirements for non-essential imports. This raised concern for Korean consumer goods exports.

Trade Outlook for the Second Half

Current Status
Trade growth continues, while FX risks are rising
June-July Outlook
Exports could soften if LC delays deepen
Second-Half Risk
Trade may contract if the FX crisis intensifies
Response Strategy
Diversify payment terms and secure key inputs early
Korea-Bangladesh Trade Status, January-February 2022Review the opening trade trend and baseline for early 2022.
Korea-Bangladesh Trade Status Through July 2022See cumulative trade performance as the market moved into the second half.
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Korea-Bangladesh Trade Status Through May 2022: A Midyear Checkpoint | Dhaka Trade Portal