Korea-Bangladesh Trade Jan–Nov 2021: $2.01B, First $2 Billion Crossing in History
Korea-Bangladesh bilateral trade reached $2.01 billion through November 2021 — the first time in the history of the bilateral trade relationship that cumulative annual trade crossed the $2 billion threshold. This result already surpassed the previous all-time annual record of $1.85 billion set in 2019, with one month of the year still remaining. Korean exports to Bangladesh reached $1.38 billion (+23% YoY), while Korean imports from Bangladesh reached $0.63 billion (+19% YoY), producing a Korean trade surplus of $0.75 billion — also an all-time bilateral record.
November monthly exports came in at approximately $120 million, slightly below October's $140 million monthly record due to seasonal construction slowdown effects on steel demand. Full-year 2021 trade was firmly on track to reach approximately $2.2 billion — a 54% increase from the COVID-impacted $1.42 billion in 2020 and a 19% increase from the 2019 record.
Historical Significance: The $2 Billion Milestone
| Year | Total Trade | Korean Exports | Korean Imports | Korean Surplus |
|---|---|---|---|---|
| 2017 | $1.48B | $1.02B | $0.46B | +$0.56B |
| 2018 | $1.68B | $1.15B | $0.53B | +$0.62B |
| 2019 | $1.85B (pre-COVID record) | $1.26B | $0.59B | +$0.67B |
| 2020 | $1.42B (COVID contraction) | $0.98B | $0.44B | +$0.54B |
| 2021 (Jan–Nov) | $2.01B (first $2B crossing) | $1.38B | $0.63B | +$0.75B |
| 2022 Forecast | $2.4–2.5B | $1.65–1.72B | $0.75–0.78B | +$0.90B+ |
Export Performance by Product Group
| Product Group | Export Value | YoY | Share | November Note |
|---|---|---|---|---|
| Steel Products | $340M | +28% | 24.6% | Seasonal construction slowdown; full-year mega project demand sustained |
| Synthetic Resins and Chemicals | $230M | +18% | 16.7% | Stable industrial demand from RMG and packaging sectors |
| Yarn and Fabrics | $190M | +14% | 13.8% | Winter garment materials; EU holiday season order support |
| Machinery and Equipment | $150M | +24% | 10.9% | Year-end equipment deliveries; factory expansion completions |
| Electronic Components | $110M | +19% | 8.0% | IT infrastructure and consumer electronics demand sustained |
| Vehicles and Auto Parts | $90M | +36% | 6.5% | Strong CKD imports; Korea Motors/Kia Bangladesh assembly expansion |
| Other | $270M | +18% | 19.6% | Diversified smaller categories including cosmetics, pharma, food |
Import Performance: Bangladesh Exports to Korea
Bangladesh's import diversification toward non-garment products is progressing steadily. Garment concentration in Korea's imports from Bangladesh declined from 71% in 2020 to 68.3% in 2021, while leather goods, seafood, pharmaceutical ingredients, and IT services exports to Korea all posted 25%+ growth. Bangladesh's government target of 30% non-garment export share by 2025 is beginning to register in bilateral trade patterns, creating new sourcing opportunities for Korean importers beyond traditional apparel categories.
4 Key Growth Drivers Behind the $2B Milestone
Full-Year 2021 Flow and 2022 Outlook
For 2022, Korea-Bangladesh trade is forecast to reach $2.4–2.5 billion, representing 9–14% growth from the 2021 full-year total of approximately $2.2 billion. The growth drivers are structural rather than cyclical: Bangladesh's GDP is projected at $416 billion, metro rail construction accelerates in 2022, and Korea Motors/Kia CKD assembly expansions will add new production lines. The primary downside risks are BDT currency depreciation pressure — which could reduce Bangladesh's import capacity for Korean goods — and global energy cost inflation impacting the RMG sector's operating margins.
| Category | 2022 Forecast | Key Driver |
|---|---|---|
| Total Bilateral Trade | $2.4–2.5B | Bangladesh GDP $416B + continuing mega project cycle + consumer market expansion |
| Korean Exports to Bangladesh | $1.65–1.72B | Steel/chemical/machinery sustained + auto parts CKD acceleration |
| Korean Imports from Bangladesh | $0.75–0.78B | Garment export growth + diversification into leather, seafood, IT services |
| Steel Products | $370–420M | Metro Rail + Matarbari + road infrastructure all entering peak construction phase |
| Automotive Parts (CKD) | $110M+ | Korea Motors/Kia new CKD model introductions + production line capacity expansion |
| Risk Factors | BDT depreciation + energy inflation | Gas supply shortage + global commodity prices — main downside scenarios for 2022 |
Korea-Bangladesh bilateral trade crossing the $2 billion threshold for the first time in November 2021 marks a structural inflection point in the relationship. With a 2022 forecast of $2.4–2.5 billion, Bangladesh has entered the tier of Korea's strategically important bilateral trade partners in South and Southeast Asia. Companies that have established procurement, manufacturing, and distribution positions in Bangladesh ahead of the 2021 record are best positioned to capture the continued growth cycle through 2025 and beyond.