Policy

Trade Structure Innovation TF 9th Meeting: Emergency Response Committee 29th Session Comprehensive Report

Meeting Overview: 9th TF and 29th Emergency Committee Convened Simultaneously

The 9th meeting of the Trade Structure Innovation Task Force (TF), which the government has been operating since the US Reciprocal Tariff imposition in 2025, was convened in integrated format with the 29th session of the Emergency Response Committee. Chaired by the Minister of Trade, Industry and Energy (MOTIE) and attended by representatives from 17 cross-government agencies including the Ministry of Economy and Finance, Ministry of Foreign Affairs, Ministry of SMEs and Startups, KOTRA, Korea International Trade Association, and Korea Trade Insurance Corporation, this session focused on conducting a midterm review of existing emergency export measure implementation while confirming 15 additional supplementary tasks to accelerate the second-half trade structure transition.

This meeting drew attention for going beyond a routine progress report — it formally adopted "qualitative transformation of the export structure" as a medium-term objective. It is assessed as the inflection point at which emphasis shifted from short-term buyer identification and matching toward supply chain restructuring, digital export infrastructure upgrading, and emerging market localization strategies. Bangladesh, along with India, was officially designated at this session as a "first-tier strategic alternative market" for South Asia.

17
Participating Agencies
Cross-government + related institutions
15
New Supplementary Tasks
Added to existing 40 tasks
KRW 850B
Emergency Additional Budget
Focused second-half deployment
65 Countries
Alternative Market Target
Expanded from 50 to 65
12,000
Export Diversification Companies Supported
2.4x increase over first half
500 Companies
Supply Chain Restructuring Support
Expanded from 200

Mid-Term Implementation Review: First-Half Achievement Rate for 40 Tasks

The 29th Emergency Response Committee session made public the first-half implementation achievement rates for the existing 40 tasks. The average achievement rate across all tasks was 78.3% of target — demonstrating stronger execution than initially feared, though shortfalls were confirmed in several tasks. Among KOTRA's 17 assigned tasks, the emergency buyer identification task (Task 1) achieved 26,000 out of a 30,000-case target for an 87% implementation rate, while emergency export voucher deployment (Task 4) reached 175B won out of 200B won for an 87.5% execution rate.

By contrast, supply chain restructuring support (Task 9) reached only 112 of a 200-company target — a 56% achievement rate. This shortfall is attributed to the long-horizon nature of production base relocation decisions and uncertainty in local investment environments, which delayed company applications. This is the background behind the substantial strengthening of supply chain restructuring support tasks in the new supplementary task design.

Implementation Achievement Rates for Key KPIs — Existing 40 Tasks (First-Half Basis)
Task CategoryRepresentative TaskTargetFirst-Half AchievementRateAssessment
Emergency Buyer IDOverseas buyer identification and matching30,000 cases26,000 cases87%Good
Export VoucherEmergency allocation deploymentKRW 200BKRW 175B87.5%Good
Market Diversification50-country entry target selection50 countries50 countries100%Achieved
Consulting SupportSME 1:1 consulting5,000 companies4,100 companies82%Good
Supply Chain RestructuringProduction base relocation support200 companies112 companies56%Below target
FTA UtilizationFTA rules-of-origin consulting1,000 companies780 companies78%Adequate
Export FinanceExport insurance and loan linkageKRW 1TKRW 820B82%Good
Digital PlatformOnline export platform enhancementUV +20%UV +14%70%Adequate
KOTRA 비상수출대책 17개 담당 과제 심층 분석Detailed analysis of the mechanism behind 17 of the 40 cross-government emergency export tasks that KOTRA directly executes, and their Bangladesh relevance.

15 New Supplementary Tasks: Core Content and Implementation Framework

The 15 supplementary tasks confirmed at the 9th TF meeting are designed both to fill the gaps from first-half implementation and to accelerate the second-half trade structure transition. The supplementary tasks are organized around three axes. The first axis — "supply chain restructuring acceleration" — focuses on incentive strengthening and procedure simplification to address the root causes of the first-half shortfalls. The second axis — "emerging market localization deepening" — expands the support scope from simple buyer identification to include local distribution network building, brand localization, and local finance linkage. The third axis — "digital export infrastructure upgrade" — includes AI-based trade matching and cross-border e-commerce export channel expansion.

01
Supplementary Task A-1: Supply Chain Restructuring Fast-Track Permit Support
This task expedites investment permit procedures in destination countries — through government channels — for companies that have decided to relocate production bases. It is an upgrade from the information-provision focus of the original Task 9 to substantive administrative support. For Bangladesh specifically, a memorandum of understanding (MOU) shortening the BIDA (Bangladesh Investment Development Authority) registration period from an average 45 days to 20 days was discussed at this session. A new service is being established to resolve land lease, power supply, and foreign worker permit issues for Korean companies entering Bangladesh EPZs — handled as a government-to-government channel priority.
02
Supplementary Task A-2: Supply Chain Restructuring Corporate Tax Incentive Package
A tax package combining Korean corporate tax reduction with overseas investment tax credits has been confirmed for companies relocating production bases in response to US tariffs. Administered by the Ministry of Economy and Finance, an additional 5 percentage point tax credit applies when the relocation destination is among the 65 target emerging markets. Bangladesh is included in this preferred emerging market list, with a separate investment tax credit item also newly established for companies using the EBA arrangement to export to the EU through a local entity.
03
Supplementary Task B-1: Emerging Market Local Distribution Network Development Support
This task supports long-term distribution contracts with local agents, wholesalers, and online platforms — going beyond simple buyer identification. KOTRA pre-screens appropriate local distribution partners through field trade offices, and provides free contract review and legal advisory services when Korean companies enter contract negotiations. In Bangladesh, a distribution partner database covering consumer goods and industrial goods will be built for the three key hubs of Dhaka, Chittagong, and Sylhet.
04
Supplementary Task B-2: K-Brand Local Influencer Marketing Program
This digital marketing support program promotes Korean consumer goods, beauty, food, and home appliance brands from the perspective of local audiences — using social media influencers in emerging markets. It is supplementary in character, transitioning the channels of the existing Korean brand promotion task (Task 16) from traditional advertising to digital and social. In Bangladesh, 60% of Bengali-language content production costs are subsidized through export voucher linkage, aligned with the country's Facebook and YouTube-centered digital marketing ecosystem.
05
Supplementary Task C-1: AI-Based Trade Matching Platform 2.0 Launch
This task introduces AI Buyer-Seller Matching 2.0 to the TradeKorea platform — transitioning from keyword search to an automated buyer recommendation system that comprehensively analyzes product category, price, MOQ, and certification conditions. The Bangladesh buyer database is being expanded to over 30,000 entries in garments, textiles, consumer goods, and chemicals, with the AI matching system automatically handling Korean-Bengali translation to eliminate language barriers.

Emergency Support Package: KRW 850B Second-Half Deployment Plan

The most immediately actionable resolution of this session is the confirmation of the second-half emergency additional budget deployment plan of KRW 850B. While the existing emergency measures budget was designed primarily for first-half deployment, this additional budget focuses on accelerating the second-half structural transition. Approximately 40% of the budget is allocated to direct company support (export vouchers, consulting, etc.); 30% to supply chain restructuring incentives and tax support; and the remaining 30% to market diversification infrastructure (trade office expansion, digital platform upgrades, local distribution network development).

Direct Company Support (KRW 340B)
Export voucher additional deploymentKRW 200B
1:1 consulting expansionKRW 50B (7,000 companies)
Export finance guarantee additionKRW 500B scale guarantees
Logistics cost subsidyKRW 30B (800 companies)
Emergency fast-track1-week approval after application
Supply Chain Restructuring Incentives (KRW 255B)
Relocating company tax creditUp to 15% of investment amount
Local entity establishment support500 companies (up from 200)
Partner identification supportIncludes free legal advisory
EPZ-dedicated packageBangladesh, Vietnam, India priority
Permit fast-trackBIDA registration shortened by 20 days
Market Diversification Infrastructure (KRW 255B)
10 new trade officesFocus on Africa and Central Asia
AI matching platform 2.010 languages including Bengali added
Local distribution network65-country partner DB
K-brand digital promotionInfluencer marketing in 35 countries
E-commerce export supportAmazon, Shopee, Daraz linkage

Core Policy Decisions: Five Structural Transition Directions

The policy decisions confirmed at the 9th TF meeting go beyond short-term emergency measures to present the medium- and long-term direction for restructuring Korea's export composition. In his closing remarks, the MOTIE minister emphasized that "the reciprocal tariff shock should paradoxically become the turning point for resolving Korea's excessive export dependence on the US and China." The five structural transition directions confirmed at this session will serve as the compass for Korean trade policy over the next two to three years.

01
Direction 1: Rebalancing the Export Geographic Portfolio (US and China Combined Below 50%)
While the combined share of the US and China in Korean exports currently stands at approximately 38%, the actual risk exposure is assessed as higher given the compounding effects of US tariff imposition and China's domestic consumption push. At this session, the government for the first time officially adopted a numeric target: raising the combined ASEAN, India, Middle East, Africa, and South America share to 45%+ by 2027. The South Asia target — including Bangladesh — is set to increase from the current 2.1% to 4.5% by 2027.
02
Direction 2: Redesigning Korea's Position Within Global Supply Chains
The positioning of Korean companies is being transitioned from simple finished goods exporters to core component, material, and equipment suppliers within global supply chains — or to operators of local production bases. To support this, the government is formally backing a "Hub and Spoke" supply chain model in which Korean companies create local value in Bangladesh, Vietnam, and India and re-export to third countries. Tax, finance, and permit fast-track mechanisms are confirmed as the three primary instruments supporting this strategy.
03
Direction 3: Scaling Up Digital Exports (Target: 15% of Total Exports)
A target has been set to more than double the cross-border e-commerce share of total exports from approximately 7% to 15% by 2027. Platform-specific Korean seller support programs on Amazon, Alibaba, Shopee, and Daraz are being expanded, and a "K-Digital Export One-Stop Center" is being established so SMEs can handle platform onboarding, advertising, and logistics in a single process. For Bangladesh specifically, Daraz platform onboarding support has been selected as the pilot program for emerging market digital exports.
04
Direction 4: Convergence of Service Exports and Manufacturing Exports
A model is being supported that bundles software, engineering, consulting, and content service exports as a package together with manufactured goods exports. Research indicates that when Korean manufacturing equipment exports are contracted together with maintenance, operating software, and training services, total export value increases by an average of 40%+ compared to equipment alone. Korean smart factory solution exports targeting Bangladesh garment factories have been presented as the representative case of this convergence model.
05
Direction 5: Export Talent Development and Local Network Strengthening
A "Global Trade Academy" program is being newly established to address the shortage of emerging market trade specialists. 3,000 export officers annually will complete training in emerging market languages, regulations, and distribution structures, with specialist courses for strategic markets — Bangladesh, Vietnam, India, UAE — opening first. A matching system is also being operated to connect personnel who have accumulated field experience through KOTRA trade office internships directly to companies.

Second-Half Implementation Roadmap: September–December Action Plan

The supplementary tasks and budget deployment confirmed at this session are managed according to a specific monthly roadmap. From the date of the 9th TF meeting, supply chain restructuring tasks are commencing immediately while digitalization and localization tasks are being activated sequentially after preparation periods. Bi-weekly Emergency Response Committee sessions (30th, 31st, etc.) serve as the midterm review mechanism for second-half execution, with the final implementation results for the 15 supplementary tasks evaluated in the December year-end wrap-up.

Second-Half Implementation Roadmap Following TF 9th and Emergency Committee 29th Sessions
Immediate Launch (Week 1, July)
Supplementary Tasks A-1 and A-2 (supply chain fast-track and tax incentives) regulatory amendments initiated, BIDA MOU signed
Month 1 (End of July)
AI matching platform 2.0 beta launched, 65-country market entry package reports distributed, additional KRW 200B voucher deployment begins
Month 2 (August)
K-brand digital promotion activated in 35 countries, local distribution network development applications open, Korea-Bangladesh CEPA 6th round held
Month 3 (September)
Emergency Committee 30th midterm review, 500-company supply chain support midterm achievement confirmed, Daraz pilot results announced
Month 5 (November)
K-Digital Export One-Stop Center officially opens, Global Trade Academy 1st cohort completes training, 65-country KPI achievement rates fully tabulated
Month 6 Year-End (December)
15 supplementary task final results announced, Phase 2 of 2026 Trade Structure Innovation plan initiated, annual export structure transition outcomes announced to the public

The 30th Emergency Response Committee session (scheduled for August) will disclose the first implementation results for this session's supplementary tasks. In particular, if the number of companies applying for the supply chain restructuring task fails to exceed 50% of the target, a conditional incentive is already pre-approved — raising the tax credit rate by an additional 5 percentage points. KOTRA's Dhaka Trade Office is also scheduled to release for the first time — timed to the 30th session — the results of its "Survey of Korean Companies Operating in Bangladesh and Latent Demand Assessment."

Emergency Committee Bi-Weekly Session Schedule and Agenda (29th–35th Sessions)
SessionExpected DateKey AgendaCore Review TasksBangladesh-Related Items
29th (This Session)Early July 202515 supplementary tasks confirmed, H2 budget approvedAll 40 tasks H1 achievement rateOfficial strategic alternative market designation
30thEnd of July 2025Supplementary task launch reviewA-1, A-2, C-1 launch statusDhaka Trade Office survey published
31stMid-August 2025Export finance additional deployment reviewExport voucher 2nd deployment rateCEPA 6th round results
32ndEarly September 2025Supply chain restructuring midterm assessment500-company support achievementEPZ entry applications status
33rdEnd of September 2025Digital export performance reviewDaraz pilot resultsBangladesh e-commerce update
34thMid-October 2025Q3 export statistics emergency analysisAlternative market export growth rateSouth Asia export share change
35thEnd of October 2025Year-end wrap-up preparationAll 55 tasks final implementationAnnual Bangladesh export change
범부처 비상수출대책 전체 구조 분석Comprehensive analysis of the structure of all 40 tasks, the cross-government cooperation framework, and the export crisis response posture.

Practical Guide for Companies in Bangladesh: How to Use the Session Outcomes

The outcomes of the 9th Trade Structure Innovation TF and 29th Emergency Response Committee sessions create specific opportunities for both Korean companies operating in Bangladesh and Bangladeshi local buyers. Korean companies can apply for supply chain restructuring support, local distribution network development, and digital marketing support as a package through this session's supplementary tasks. Bangladeshi buyers will gain access to more comprehensive support when sourcing Korean products through the upgraded services of KOTRA's Dhaka Trade Office.

The 9th Trade Structure Innovation TF and 29th Emergency Response Committee session will be recorded not as a routine progress review, but as the inflection point at which Korea officially declared a qualitative transformation of its export structure. The 15 supplementary tasks and KRW 850B in additional budget create tangible opportunities for emerging market entry including Bangladesh. Since pre-applications for tasks of interest are now open ahead of the next 30th Emergency Committee session (scheduled for end of July), moving quickly to leverage this session's outcomes is essential.

Trade Structure Innovation TFemergency response committeeexport diversificationsupply chain restructuringemergency export supportreciprocal tariff responseexport policymarket diversification
Trade Structure Innovation TF 9th Meeting: Emergency Response Committee 29th Session Comprehensive Report | Dhaka Trade Portal