Korea-Bangladesh Bilateral Trade Status
The following analyzes the latest status of Bangladesh's trade sector based on primary data collected by KOTRA's Dhaka trade office local staff. Bangladesh is a major South Asian trading nation conducting approximately $100 billion in annual foreign trade, and bilateral trade with Korea stands at approximately $2.5 billion as of 2025, showing steady growth.
Korea is one of Bangladesh's top 10 import countries, maintaining a stable export base particularly in synthetic fabric, machinery, steel products, and chemical raw materials. Conversely, Bangladesh's exports to Korea are overwhelmingly dominated by ready-made garments (RMG), with a recent trend toward diversification into leather goods, seafood, and jute products.
Korean Export Item Trends to Bangladesh
The following is an analysis of Korean export item status to Bangladesh prepared by Dhaka trade office local staff based on Bangladesh Bank and Export Promotion Bureau (EPB) data. Synthetic fabric accounts for approximately 35% of the total, holding an overwhelming first-place position, driven by raw material demand from Bangladesh's garment industry. Machinery and steel products rank second and third respectively, with electronic components and plastic raw material exports growing rapidly in recent years.
| Rank | Item | Export Value ($M) | Share (%) | YoY Change |
|---|---|---|---|---|
| 1 | Synthetic Fabric (HS 5407) | 654 | 35.0 | +3.8% |
| 2 | Machinery (HS 84) | 298 | 15.9 | +6.2% |
| 3 | Steel Products (HS 72-73) | 215 | 11.5 | +2.1% |
| 4 | Chemical Raw Materials (HS 29) | 168 | 9.0 | +5.7% |
| 5 | Electronic Components (HS 85) | 112 | 6.0 | +12.4% |
| 6 | Plastic Raw Materials (HS 39) | 89 | 4.8 | +9.3% |
| 7 | Auto Parts (HS 87) | 67 | 3.6 | +4.5% |
| 8 | Paper Products (HS 48) | 45 | 2.4 | -1.2% |
| 9 | Medical Devices (HS 9018) | 38 | 2.0 | +15.8% |
| 10 | Other | 184 | 9.8 | +3.1% |
Bangladesh Export to Korea (Korean Import) Trends
Bangladesh's exports to Korea show a concentrated structure, with ready-made garments (RMG) accounting for approximately 78%. However, export items are gradually diversifying into leather and leather goods, seafood (frozen shrimp), jute and jute products, and agricultural products — the result of Bangladesh's government export diversification policy intersecting with changing demand in the Korean market.
| Item | Export Value ($M) | Share (%) | Notable Aspects |
|---|---|---|---|
| RMG (Knitwear) | 285 | 45.2 | Korean SPA brand OEM increasing |
| RMG (Woven) | 207 | 32.9 | Formalwear and outerwear focused |
| Leather and Leather Goods | 42 | 6.7 | Korean bag/shoe company sourcing expanding |
| Frozen Shrimp and Seafood | 31 | 4.9 | Black tiger shrimp premium |
| Jute and Jute Products | 18 | 2.9 | Eco-friendly packaging demand growing |
| Agricultural Products | 12 | 1.9 | Spices, dried fruits, etc. |
| Other | 35 | 5.5 | Bicycles, ceramics, etc. |
Bangladesh Tariff Structure and Trade Cost Analysis
Bangladesh's tariff system has one of the highest levels of complexity in South Asia and directly affects the export price competitiveness of Korean companies. The following tariff structure analysis was prepared by Dhaka trade office local staff based on National Board of Revenue (NBR) data and actual customs clearance cases. Beyond the basic customs duty (CD), supplementary duty (SD), regulatory duty (RD), value-added tax (VAT), advance income tax (AIT), and environmental surcharge (CESS) are applied in overlapping layers, frequently resulting in an effective tax rate 1.5–2x the nominal rate.
| Component | Rate Range | Applicable Scope | Notes |
|---|---|---|---|
| Customs Duty (CD) | 0–25% | All imports | 4 tiers: 0/5/10/25% |
| Supplementary Duty (SD) | 0–500% | Luxury goods and protected items | Alcohol/tobacco 500% |
| Regulatory Duty (RD) | 0–5% | Specific items | Domestic industry protection purpose |
| Value Added Tax (VAT) | 15% | Most imports | Based on duty-inclusive price |
| Advance Income Tax (AIT) | 3–5% | Business imports | Functions as income tax prepayment |
| Environmental Surcharge (CESS) | 1% | Specific items | Waste-related products |
Trade Infrastructure and Customs Clearance Environment
Bangladesh's trade infrastructure has seen notable improvements over the past five years, but structural problems — including port congestion, customs clearance delays, and excessive logistics costs — remain. The following analyzes the throughput capacity and customs clearance times of major ports and airports based on data collected by local staff directly at customs clearance sites.
| Facility | Throughput Capacity | Average Customs Time | Key Issues |
|---|---|---|---|
| Chittagong Port (CGP) | 3.2M TEU/year | 7–12 days | Congestion worsening, expansion underway |
| Mongla Port | 150K TEU/year | 5–8 days | Southwest hub, growing |
| Payra Deep Sea Port | 80K TEU/year (Phase 1) | 3–5 days | Full operations from 2025 |
| Hazrat Shahjalal Airport | 300K ton/year (cargo) | 2–4 days | Cargo terminal saturation |
| ICD Kamalapur | Inland container depot | 3–5 days | CFS expansion needed |
| Benapole Land Border | India border trade | 4–7 days | Complex documentation procedures |
Trade Facilitation and FTA Utilization Strategy
With LDC graduation in 2026 approaching, structural changes to Bangladesh's trade environment are anticipated. Currently, LDC status provides duty-free market access (EBA, GSP) benefits in the EU, Canada, Japan, and other markets, but once the three-year grace period following graduation expires, these preferences will be gradually reduced. Accordingly, the Bangladesh government is actively pursuing FTA/CEPA agreements with major trading partners including Korea.