Overview of the Management Survey
Each year, KOTRA conducts a management survey of Korean companies operating overseas. The survey covers revenue, operating profit, investment size, employment, and future business plans to assess current operating conditions and the key challenges faced by firms abroad. This analysis focuses on the business performance of Korean companies in Bangladesh, with particular attention to profitability by industry, differences by firm size, and the practical factors behind stronger results.
Overall, Korean companies in Bangladesh are showing relatively solid business performance. Garment manufacturers in particular continue to generate stable profits through export processing built on low labor costs, while more recently established trading and service firms are also posting rising sales as Bangladesh's domestic market expands.
Revenue Performance by Industry
A sector-by-sector review of Korean companies in Bangladesh shows that construction and engineering firms record the highest average revenue per company, while garments and apparel generate the largest aggregate revenue because of the industry's large company base. IT and services remain smaller in absolute scale, but they are posting the fastest growth rates.
| Industry | Firms | Avg. Revenue | Operating Margin | Revenue Growth | Profitable Firms |
|---|---|---|---|---|---|
| Garments & Apparel | 195 | $18M | 9.2% | 10% | 78% |
| Textiles & Fabrics | 30 | $12M | 7.5% | 8% | 70% |
| Construction & Engineering | 18 | $30M | 6.8% | 15% | 65% |
| Trading & Commerce | 28 | $8M | 5.2% | 18% | 72% |
| IT & Services | 15 | $3M | 12.5% | 35% | 60% |
| Food & Dining | 12 | $5M | 8.0% | 20% | 68% |
| Other | 22 | $10M | 6.5% | 12% | 70% |
A Closer Look at Profitability
The average operating margin of Korean companies in Bangladesh stands at 8.5%, which is above the global average of 6.2%. Profitability is especially strong in IT and services (12.5%) and in garments and apparel (9.2%). These results suggest that Bangladesh's low labor costs and tax incentives remain decisive factors supporting stronger margins.
Five Drivers of Business Success
The management survey presents a clear picture of Korean companies in Bangladesh: stable profitability paired with meaningful growth potential. A 72% profit ratio, an average operating margin of 8.5%, and 12% revenue growth all suggest that Bangladesh continues to provide a workable operating environment for Korean firms. The most proven model remains export-oriented manufacturing built on wage competitiveness and tax incentives, while newer high-margin opportunities are also emerging in IT and services.