Research

KSP Brochure Analysis: Applying Korea's Economic Development Experience in Bangladesh

Overview of the KSP Economic Development Experience Sharing Program

The KSP, or Knowledge Sharing Program, is a major economic cooperation initiative of the Korean government, led by the Ministry of Economy and Finance and implemented by the Korea Development Institute (KDI). Its core mission is to systematically transfer Korean development policy expertise and policy instruments to developing countries, and since its launch in 2004, it has delivered more than 700 advisory projects across 80 countries.

Bangladesh has been a key partner of KSP since 2008, with two to three advisory projects per year. Major advisory areas include industrial policy, export promotion, financial sector reform, ICT policy, urban planning, and environmental management. In each case, implementation is strengthened through cooperation with KOTRA, KOICA, and Korea Exim Bank, so outputs are designed to convert into concrete projects. The KSP brochure introduces the program's full operating model and performance in both Korean and English.

2004
KSP Launch
Led by MOEF
KDI
Implementing Body
Korea Development Institute
80+
Target Countries
Cumulative
700+
Advisory Cases
2004-2024
2008~
Bangladesh
2-3 projects/year
$30M+
Annual Budget
Total KSP
6 Pillars
Advisory Fields
Industry, finance, ICT etc.
KOTRA·KOICA
Key Agencies
Project linkage

KSP Program Structure and Types

The KSP is organized into three types. First, bilateral KSP provides customized policy advisory in response to specific requests from partner governments. A Korean expert team conducts field assessments, policy research, workshops, and a final report over one year. Second, multilateral KSP undertakes policy studies together with international organizations such as ADB, the World Bank, and IADB. Third, KOTRA KSP is a trade-and-industry focused development strategy program; in Bangladesh, it has advised on EPZ operations, export diversification, and investment attraction strategies. Depending on category, the program handles around 20 to 30 cases per year, and Bangladesh is frequently selected under both bilateral and KOTRA KSP tracks.

Comparison of KSP Program Types
TypeLead AgencyCharacteristicsAnnual VolumeBangladeshBudget per Case
Bilateral KSPKDITailored policy advisory20-25 cases1-2 cases/year$200-300K
Multilateral KSPKDI+International institutionsJoint research with ADB/WB5-8 cases0-1 cases/year$300-500K
KOTRA KSPKOTRAIndustry and trade specialization15-20 cases1-2 cases/year$150-250K
Modular KSPKDIShort-cycle advisory10-15 cases0-1 cases/year$50-100K
KSP-WBKDI+WBWorld Bank collaboration3-5 cases0-1 cases/year$200-400K
Total55-75 cases2-5 cases/year

Bangladesh KSP Application Cases

Industry and economy advisory
EPZ operation upgrading2012 — Korean EPZ model transfer
Export diversification2015 — garments diversification strategy
Industrial zone development2018 — BEZA zone advisory
SME promotion2020 — SME policy framework
Infrastructure and technology advisory
ICT master plan2014 — Digital Bangladesh strategy
Power planning2016 — PSMP energy mix advisory
Urban transport2019 — Dhaka integrated transport planning
Environmental management2021 — Climate adaptation policy

In Bangladesh, one of the most successful KSP cases has been the modernization of EPZ operations. In 2012, Korea transferred EPZ management practices from Masan and Iri EPZs to Bangladesh' BEPZA, significantly improving processing speed. The result reduced enterprise registration and clearance time from 30 days to 7 days and introduced a one-stop service model. This fed directly into the establishment of BEZA in 2015 and the broader reform of economic zone policy, ultimately supporting Korean firm discussions on Mirsarai. The 2014 ICT master plan advisory also became the core architecture of Bangladesh' Digital Bangladesh policy and prepared the ground for Korean ICT firm entry. Overall, Bangladesh shows a strong feedback loop: KSP advisory → policy formulation → concrete project opportunities.

Experience Transfer Mechanism and Policy Implications

01
KSP transfer process
The transfer process is structured into five stages. Step one is scoping mission: demand mapping and a 2-3-week local assessment. Step two is policy research: Korean experience review, partner-country diagnosis, and comparative studies. Step three is interim review: local seminars, stakeholder feedback. Step four is Korea-hosted training, where 10-15 partner-country officials visit Korea for a two-week hands-on program. Step five is final report delivery with an implementation roadmap. The full process generally takes about 12 months.
02
Korean expert network
KSP relies on a broad expert pool beyond KDI researchers, including former government officials, industrial experts, and academics. In Bangladesh, advisors commonly include personnel from the ministries of trade, transport, environment, and information technology, bringing practical policy design and execution experience. KOTRA KSP reinforces impact by combining this advisory capacity with market intelligence and local business networks.
03
KSP-to-project linkage mechanism
The greatest value of KSP is converting policy advisory into implementation. A typical pipeline is KSP advisory → ADB/WB technical assistance → EDCF/KOICA ODA → Korean project acquisition. In Bangladesh, one representative path has been KSP EPZ advisory → BEZA establishment → Mirsarai Korean zone → Korean entry into zone investments. This is supported by information-sharing across the Ministry of Economy and Finance, KOTRA, KOICA, and Exim Bank.
04
Constraints and improvements for Bangladesh KSP
Bangladesh's implementation limits are threefold: first, weak post-implementation follow-up, with more than half of reports remaining advisory outputs and only about 30% reflected in actual policy; second, limited local capacity due to frequent personnel turnover in government, which slows institutionalization; and third, budget constraints, as each case typically has only $200-300K, which limits deep research. Suggested improvements include two-year follow-ups, joint research with local institutions, and expanded budgets.
From KSP Knowledge Transfer to Project Linkages
KSP Advisory
Policy research and recommendations
Policy Adoption
Partner-government uptake
ADB/WB TA
Expanded technical support
ODA Implementation
EDCF/KOICA linkage support
Corporate Entry
EPC and PPP opportunities
ADB Investment Policy Roadmap AnalysisReview the policy roadmap and investment opportunities linked to KSP
Bangladesh KSP Industry Analysis ReportCheck detailed policy outcomes and sector-level implications

The KSP brochure presents a complete view of Korea's economic development experience sharing framework and outcomes. Bangladesh has been one of the closest partner countries, receiving guidance in industrial policy, ICT, and urban infrastructure since 2008. The EPZ modernization example demonstrates the strongest evidence of impact: the EPZ operational upgrade to BEZA and eventually to the Mirsarai Korean zone created a ten-year policy-to-project pipeline. For Korea, this demonstrates a practical model—policy advisory to KSP, then to ADB/WB TA, and finally to ODA-linked implementation and corporate opportunities. The next productivity gains will require stronger post-project monitoring and local capacity building.

KSPKDIPolicy AdvisoryEconomic DevelopmentODA
KSP Brochure Analysis: Applying Korea's Economic Development Experience in Bangladesh | Dhaka Trade Portal