Investment

2021 Korea-Bangladesh Investment Status Analysis

2021 Korea-Bangladesh Investment Status Analysis

This article provides a comprehensive analysis of bilateral investment between Korea and Bangladesh in 2021 — covering Korean company investment trends during the COVID-19 recovery period, sector-by-sector breakdowns, major companies active in the market, and the broader economic cooperation relationship between the two countries.

Korea ranks among Bangladesh's top five investing countries, with cumulative investment exceeding $1.5 billion and 500+ Korean companies operating in the country as of 2021. The textile and apparel sector accounts for the largest share, while diversification into manufacturing, construction, IT, and financial services is underway. New investment increased alongside the COVID-19 recovery.

$1.5B+
Cumulative Investment
Korean total
500+
Korean Companies
operating in BD
$200M+
2021 New Investment
annual inflow
500K+
Employment Created
local jobs
Textiles
Largest Sector
60%+ share
$3B+
Exports
Korean companies
100+
EPZ Presence
Korean companies
$2B+
Bilateral Trade
2021 total

Investment by Sector

Korea-Bangladesh Investment by Sector (2021)
SectorInvestment ScaleCompaniesKey PlayersCharacteristics
Textile & Apparel$900M+300+Korea Trading, Korea Fashion B, Sae-AEPZ-centric
Manufacturing & Electronics$200M+50+Korea Corp affiliatesComponent assembly
Construction & Infrastructure$150M+30+Korea Motors, Korea Construction CEPC contracts
IT & Telecom$100M+20+Korea CNS, Korea SDSSystems integration
Finance & Services$50M+10+Hana, WooriBanking and insurance

Bilateral Economic Cooperation

Government-to-Government
EDCF$1B+ cumulative loans
KOICA$30M+/year ODA
DTAADouble taxation avoidance
BITBilateral investment treaty
Private Sector Cooperation
KOTRADhaka Trade Center
코리아유리IChamber of commerce exchange
Labor MobilityEPS (Employment Permit System)
Technical CooperationKOPIA, KSP programs
01
Textile and Apparel Expansion
Korean textile companies continue to expand their Bangladesh production bases. Korea Trading (15,000+ employees), Korea Fashion B (10,000+ employees), and Sae-A Trading are pursuing factory expansions and new construction. ESG and green investment is accelerating, with Green Factory conversions (solar power, wastewater treatment) underway across the sector.
02
Non-Textile Diversification
In 2021, Korean investment in Bangladesh is diversifying beyond textiles. Investment is growing in electronics components (Korea Corp affiliates), auto parts (Korea Motors and Kia affiliates), IT services (Korea CNS), food (코리아CJ), and construction (Korea Engineering Co & Construction).
03
EDCF and ODA Linkages
Korean EDCF concessional loans (cumulative $1B+) support Bangladesh infrastructure projects, generating procurement opportunities for Korean construction and equipment companies. Korean firms win EPC contracts and establish local subsidiaries in EDCF-funded projects across roads, bridges, power, IT, and education.
04
Digital and Smart Cooperation
Korea-Bangladesh digital economy cooperation is expanding. Key areas for 2021 include Korean IT company exports of e-government, smart city, and fintech solutions; Bangladesh IT workforce development (KOICA digital ODA); and startup exchanges under the Korea-Bangladesh technology partnership.

Korea-Bangladesh Investment Flow

Korean Company Bangladesh Investment Process
KOTRA Consulting
Market research
Site Visit
Partners and locations
BIDA Registration
Investment approval
Entity and Facility
Incorporation and construction
Operations
Production and export

The Korea-Bangladesh investment relationship is entering a new growth phase — diversifying beyond textiles into non-textile manufacturing, digital services, and infrastructure.

2021 FDI TrendsExplore Bangladesh FDI trends for 2021
2021 BEZA UpdateExplore the 2021 BEZA Economic Zones Authority update
KoreaInvestmentBilateralCOVID Recovery2021
2021 Korea-Bangladesh Investment Status Analysis | Dhaka Trade Portal