Research

Korea-Bangladesh Trade Semiannual Summary Series: 2021 H1 to 2023 H2

Overview of the Semiannual Trade Series

This article provides a comprehensive review of Korea-Bangladesh trade across six half-year periods from the first half of 2021 through the second half of 2023. Over this span, bilateral trade moved through a full cycle, from the post-pandemic recovery phase in 2021 H1 to the all-time high in 2022 H2 and then into an adjustment phase in 2023 H2. Total trade expanded from USD 920 million in 2021 H1 to USD 1.58 billion in 2022 H2, a 72% increase, before easing modestly to USD 1.32 billion in 2023 H2.

The value of a semiannual lens is that it reduces monthly volatility while still capturing seasonal patterns and policy effects that annual analysis can miss. Korea's exports to Bangladesh show a clear second-half bias, while imports tend to be relatively stronger in the first half. This reflects the ordering cycle of Bangladesh's garment sector and the capital investment cycle for Korean industrial goods.

6 half-years
Period Covered
2021H1-2023H2
$1,580M
Peak Trade
2022H2
$920M
Lowest Trade
2021H1
+72%
Growth
low to peak
$680M
Avg. Exports
per half-year
$520M
Avg. Imports
per half-year
Surplus
Trade Balance
positive every period
H2 stronger
Seasonality
exports concentrated in H2

Semiannual Trade Data

The six half-year periods reveal a distinct growth-then-adjustment pattern. In 2021 H1, during the early stage of post-COVID recovery, Korea-Bangladesh trade stood at USD 520 million in exports and USD 400 million in imports. A rapid rebound began in 2021 H2 and culminated in a record high in 2022 H2, when exports reached USD 890 million and imports climbed to USD 690 million. Trade moderated in 2023 because of the global slowdown and Bangladesh's foreign exchange constraints, but exports still held at a high level of USD 780 million in 2023 H2.

Korea-Bangladesh Semiannual Trade Trend (2021H1-2023H2, USD million)
Half-YearExportsImportsTotal TradeTrade Balancevs. Previous
2021H1520400920+120Base
2021H26304701,100+160+20%
2022H17205501,270+170+15%
2022H28906901,580+200+24%
2023H18105801,390+230-12%
2023H27805401,320+240-5%
Total4,3503,2307,580+1,120-
Average7255381,263+187-

Seasonality and Structural Analysis

Characteristics of H1
Exports$520-810M | order-booking phase
Imports$400-580M | raw material shipments
Garment OrdersS/S season concentration
FeatureAffected by Ramadan and hartal volatility
Characteristics of H2
Exports$630-890M | delivery-heavy period
Imports$470-690M | finished goods imports
Garment OrdersLarge F/W season shipments
FeatureCapital investment and plant exports concentrated

Three structural features stand out in this semiannual trade pattern. First, exports in the second half are on average 15-20% higher than in the first half. This is largely driven by stronger shipments of garment materials for Bangladesh's autumn-winter season and the concentration of equipment deliveries for second-half investment projects. Second, the gap between first-half and second-half imports is narrower at roughly 10-15%, since imports of apparel products remain relatively even throughout the year. Third, Korea's trade surplus expanded from USD 120 million in 2021 H1 to USD 240 million in 2023 H2, indicating that growth in Korea's industrial exports outpaced the increase in consumer goods imports.

Outlook and Strategic Implications

01
What Drove the Record High in 2022 H2
The USD 1.58 billion trade figure in the second half of 2022 reflected a combination of post-pandemic rebound demand, stronger infrastructure investment in Bangladesh following the completion of the Padma Bridge, and higher export unit values linked to energy prices. Korean exports of textile machinery and chemical feedstock to Bangladesh rose 35% from the previous half, while Bangladesh's garment exports to Korea also increased 28% on the back of large F/W season orders.
02
Why Trade Adjusted in 2023
The 8-12% decline in 2023 trade was mainly attributable to Bangladesh's falling foreign exchange reserves, import LC restrictions, and tighter dollar liquidity. These measures affected imports of Korean industrial and consumer goods, while Bangladesh's garment exports also came under pricing pressure amid softer global demand. Even so, overall trade remained more than 30% above the pre-pandemic 2019 level.
03
How the Product Mix Changed
Across the six half-year periods, one of the most notable shifts on the export side was the rise of energy-related exports, including petroleum products and LNG equipment, whose share increased from 8% to 15%. Textile machinery and chemical raw materials held a stable 25-30% share, while electronic components such as semiconductors and displays expanded from 5% to 9%. On the import side, apparel declined from 75% to 68%, while seafood and leather products gained share, indicating gradual diversification of Bangladesh-origin imports.
04
Prospects After 2024
Political transition in Bangladesh remains the biggest variable for trade after 2024. If foreign exchange conditions improve, semiannual trade in the USD 1.4-1.5 billion range appears achievable, supporting an annual total of roughly USD 2.8-3.0 billion. Priority strategies include expanding exports related to energy and digital infrastructure, improving trade institutions through RCEP-related discussions, and maximizing tariff preferences before Bangladesh's LDC graduation in 2026.
Semiannual Trade Cycle (2021-2023)
2021H1
$920M recovery begins
2021H2-2022H1
$1,100-1,270M acceleration
2022H2
$1,580M all-time high
2023H1
$1,390M adjustment begins
2023H2
$1,320M stabilization
Three-Year Comparison of Korea-Bangladesh Trade Structure (2021-2023)Review annual trade structure and changes across the three-year period
Korea-Bangladesh Trade Balance Trend (2021-2023)Examine the surplus structure and product-level contribution over the past three years

The semiannual analysis for 2021 H1 to 2023 H2 clearly illustrates the growth-to-adjustment cycle in Korea-Bangladesh trade. Bilateral trade expanded 72%, from the recovery phase at USD 920 million to a record USD 1.58 billion, before entering a softer adjustment phase at USD 1.32 billion amid foreign exchange pressures and slower global demand. Stronger second-half exports, a widening trade surplus, and a rising share of energy and electronic component exports stand out as the core structural trends. If Bangladesh achieves greater political stability and improved FX conditions in 2024, the relationship is positioned to move back into a renewed growth phase.

tradesemiannualexports-imports2021-2023trade balance
Korea-Bangladesh Trade Semiannual Summary Series: 2021 H1 to 2023 H2 | Dhaka Trade Portal