DHAKA
Investment

Korea-Bangladesh Investment Status Analysis in 2020

Analysis of Korea-Bangladesh Investment in 2020

This report provides an integrated review of Korea-Bangladesh investment in 2020. It covers Korea's cumulative and annual investment size, leading market entrants, thematic sectors, bilateral economic ties, and Korea's official investment support system, and concludes with short- to medium-term outlook.

Korea is one of the top five investors in Bangladesh, with active investment flows concentrated in garments, electronics, and infrastructure. The bilateral Investment Promotion and Protection Agreement (BIT) and Double Taxation Avoidance Agreement (DTA) are already in place, creating a clear policy baseline.

USD 500M+
Korean Investment
cumulative
USD 120M+
2020 Investments
new
50+
Entering Firms
Korean
5th
Investment Rank
in Bangladesh
garments & electronics
Core Sectors
manufacturing
signed
BIT
investment protection
signed
DTA
tax treaty
100,000+
Jobs
local employment

Detailed Investment Status

Korean Investment in Bangladesh by Sector
SectorInvestment AmountCompany CountKey FirmsLocation
Garment & TextilesUSD 200M+15+Korea Trading · Hanyul · SEAEPZ·general zones
Electronics & CablesUSD 100M+8+Korea Corp · 코리아LS · DaewonEPZ·SEZ
Infrastructure & ConstructionUSD 80M+5+Korea Motors · Korea Construction C · 코리아GSnationwide
Beauty & Personal CareUSD 50M+5+S&N · DongmyungEPZ
Other ManufacturingUSD 70M+17+variousEPZ·general zones

Bilateral Investment Framework

Institutional Foundation
BITsigned 1986 (investment protection)
DTAsigned 1984 (tax burden mitigation)
CEPAnegotiating (from 2025)
Economic Joint Committeeheld biennially
Korean Public Support
KOTRADhaka mission operating
EDCFUSD 1B+ cumulative disbursement
KOICAtechnical cooperation programs
Mofidinvestment and export insurance

Korean Success Cases and Entry Strategies

01
Korea Electronics: Manufacturing and Sales Hub
Korea Electronics runs manufacturing and sales entities in Bangladesh for TVs, refrigerators, and air conditioners. In a market of 170 million people it holds top-tier market share for electronics. Localized production has reduced tariff exposure and improved responsiveness, while BIDA registration and tax support are actively utilized.
02
Korea Trading Trade: EPZ Manufacturing and Exports
Korea Trading Trade operates garment and footwear factories in Chittagong EPZ and exports primarily to European and U.S. markets. Tax holidays, duty exemptions, and one-stop services at EPZs have helped it evolve into a critical supply-chain base.
03
Korea Engineering Co: Infrastructure Orders
Korea Engineering Co has won and executed transport, bridge, and power infrastructure projects. It participates in ICB tenders involving ADB, World Bank, and EDCF financing, strengthening competitiveness through Korea-led ODA-linked projects.
04
Korea Growth Strategy
To expand investment, Korean firms are strengthening Bangladesh as a viable China+1 alternative, increasing entry into BEZA economic zones, preparing for eventual CEPA market access effects, and expanding into digital, fintech, and logistics verticals.

Korean Investment Entry Flow

Korean Investment Entry Pathway
KOTRA Consultation
market research
↓
BIDA Registration
investment clearance
↓
Zone Entry
BEZA·BEPZA
↓
Operations
manufacturing & sales
↓
Scale-up
portfolio expansion

The Korea-Bangladesh investment relationship is structurally positioned for gradual expansion, supported by institutional instruments and proven operating precedents.

FDI Trend AnalysisReview Bangladesh's FDI trend in 2020
BIDA Service GuideReview BIDA services and support options
Koreainvestmentbilateraleconomy2020
Korea-Bangladesh Investment Status Analysis in 2020 | Dhaka Trade Portal