2023 Trade Review Overview
Bilateral trade between Korea and Bangladesh reached approximately $2.1B in 2023, equivalent to roughly KRW 2.8T. Korea exported about $1.5B to Bangladesh while imports stood near $0.6B. Although trade volume declined from the previous year due to the global slowdown and Bangladesh's foreign exchange crisis, the medium-term growth trajectory remains intact.
This review provides an integrated assessment of full-year 2023 trade data, covering export and import volume, major product groups, trade balance shifts, and the outlook for 2024-2025. It offers baseline data for Korean companies shaping their Bangladesh market strategy.
Analysis of Korea's Exports to Bangladesh
Korea's exports to Bangladesh totaled about $1.5B in 2023, down 14% from $1.74B in the previous year. The main drivers were Bangladesh's restrictions on import LC openings amid the foreign exchange crisis and weaker raw material demand caused by the global slowdown. Even so, core product groups such as synthetic fabrics, steel, and industrial machinery maintained a stable export base.
| Rank | Item | HS Code | Exports ($M) | YoY | Share |
|---|---|---|---|---|---|
| 1 | Synthetic Fiber Fabrics | 5407/5512 | 320 | -18% | 21.3% |
| 2 | Steel Plates and Coils | 7208-7212 | 210 | -12% | 14.0% |
| 3 | Synthetic Resins | 3901-3914 | 145 | -8% | 9.7% |
| 4 | Knitted Fabrics | 6001-6006 | 120 | -15% | 8.0% |
| 5 | Industrial Machinery | 8428-8479 | 95 | -5% | 6.3% |
| 6 | Electronic Components | 8541-8542 | 75 | +3% | 5.0% |
| 7 | Dyes and Pigments | 3204-3212 | 65 | -10% | 4.3% |
| 8 | Auto Parts | 8708 | 55 | +8% | 3.7% |
| 9 | Plastic Products | 3917-3926 | 48 | -6% | 3.2% |
| 10 | Chemical Products | 2801-2942 | 42 | -12% | 2.8% |
Structural Features of the Export Mix
Korea's exports to Bangladesh are fundamentally shaped by a supply relationship tied to RMG inputs. Three of the top five export categories, synthetic fabrics, knitted fabrics, and dyes, are all apparel manufacturing materials, accounting for roughly 35% of total exports. The result is a trade structure in which growth in Bangladesh's RMG industry is directly linked to Korean export performance.
Analysis of Korea's Imports from Bangladesh
Korea's imports from Bangladesh stood at approximately $0.6B in 2023, down 7% from the previous year. About 85% of imports consisted of garments, both knit and woven, followed by leather goods, footwear, and seafood. Korea is Bangladesh's sixth-largest garment export market, and most imports continue to benefit from duty-free access under GSP preferences.
| Item | HS Code | Imports ($M) | YoY | Share |
|---|---|---|---|---|
| Knitwear | 6101-6114 | 200 | -5% | 33.3% |
| Woven Garments | 6201-6211 | 150 | -10% | 25.0% |
| Leather and Hides | 4101-4115 | 45 | -8% | 7.5% |
| Footwear | 6401-6405 | 38 | +2% | 6.3% |
| Frozen Seafood | 0303-0307 | 35 | +5% | 5.8% |
| Home Textiles | 6301-6304 | 30 | -3% | 5.0% |
| Jute Products | 5303-5310 | 18 | -12% | 3.0% |
| Other | - | 84 | -8% | 14.1% |
Trade Balance Trend Analysis
Korea-Bangladesh trade continues to produce a structural surplus for Korea. In 2023, the trade balance stood at +$0.9B, reflecting a persistent pattern in which Korea exports industrial and intermediate goods to Bangladesh and imports finished consumer products, especially garments. This "intermediate exports, finished-goods imports" structure is likely to remain in place as long as Bangladesh's RMG base stays competitive.
| Year | Exports ($M) | Imports ($M) | Trade ($M) | Balance ($M) | YoY |
|---|---|---|---|---|---|
| 2019 | 1,420 | 520 | 1,940 | +900 | - |
| 2020 | 1,180 | 430 | 1,610 | +750 | -17% |
| 2021 | 1,650 | 580 | 2,230 | +1,070 | +38% |
| 2022 | 1,740 | 650 | 2,390 | +1,090 | +7% |
| 2023 | 1,500 | 600 | 2,100 | +900 | -12% |
Implications of the Trade Trend
Outlook for 2024-2025
Korea-Bangladesh trade in 2024 remained exposed to uncertainty through the second half of the year due to Bangladesh's political instability, including the July 2024 transition government, and continuing foreign exchange stress. In 2025, trade normalization is expected to gain traction as the interim administration pursues stabilization measures, IMF support of $4.7B continues, and exports recover.
Korea-Bangladesh trade is built on a clear industrially complementary structure, with Korea supplying intermediate goods and Bangladesh exporting finished goods. The decline in 2023 should be read as a temporary adjustment triggered by external shocks rather than a break in the long-term trend. With a population of 170 million and medium-term GDP growth potential around 6% annually, Bangladesh remains a strategic market. Korean companies need a two-track approach that preserves their RMG-linked export base while expanding into non-RMG fields such as infrastructure, digital transformation, and energy.