DHAKA
Trade & Business

Analysis of Korean Export Items in Bangladesh EPZs (KEPZ + CEPZ + DEPZ)

Overview of Bangladesh's Three Major EPZs

Bangladesh's export processing zones (EPZs) are a core industrial platform for attracting foreign investment and expanding exports. This article reviews the export items, investment footprint, and incentive structures of Korean companies operating in the three major EPZs: KEPZ (Korean Export Processing Zone), CEPZ (Chattogram Export Processing Zone), and DEPZ (Dhaka Export Processing Zone).

3
EPZs Covered
KEPZ, CEPZ, DEPZ
28
Korean Firms
Across all 3 EPZs
$420M
Total Investment
Cumulative
$850M
Annual Exports
Korean firms output
45,000
Employment
Local jobs
10 years
Corporate Tax Holiday
Core incentive

Comparison of the Three EPZs

Comparative View of KEPZ, CEPZ, and DEPZ
ItemKEPZCEPZDEPZ
LocationNorthern ChattogramSouthern ChattogramSavar, Dhaka
Established199919831993
Area261 acres453 acres356 acres
Korean Firms1297
Core ItemsGarments, textilesGarments, electronicsGarments, leather
Annual Exports$350M$300M$200M

Export Item Analysis for Korean Companies

Korean Firms in KEPZ
Garments and Sewing8 firms ($280M)
Textile Fabrics2 firms ($40M)
Food Processing1 firm ($20M)
Electronics Assembly1 firm ($10M)
Korean Firms in CEPZ + DEPZ
CEPZ Garments6 firms ($220M)
CEPZ Electronics3 firms ($80M)
DEPZ Garments5 firms ($150M)
DEPZ Leather2 firms ($50M)
01
KEPZ in Detail
KEPZ was established in 1999 under a bilateral understanding between the Korean and Bangladeshi governments and functions as a Korea-focused EPZ. Twelve Korean firms operate there, generating roughly $350 million in annual exports, with garments and sewing accounting for around 80%. Representative companies include Korea Trading, Shin Shin, and SQ Group.
02
Incentive Structure
The three EPZs share a common incentive package: a 10-year corporate tax holiday followed by a 50% reduction for five years, duty exemption on imported machinery and raw materials, full repatriation of profits, VAT exemption, and double taxation relief under the Korea-Bangladesh tax treaty. KEPZ additionally offers dedicated infrastructure such as power, gas, and water supply.
03
Export Diversification Trend
The export mix is gradually expanding beyond the traditional garments and sewing base, which still accounts for about 85%. Electronics assembly in CEPZ, leather goods in DEPZ, and food processing in KEPZ are broadening the portfolio. The non-garment share is estimated to be rising from 15% to 20%.
04
Additional Investment Strategy
Priority strategies include the second-phase expansion of KEPZ by 161 acres to attract additional Korean SMEs, deeper electronics and IT investment in CEPZ with Korea Electronics and Korea Display partner ecosystems, expansion of leather and footwear OEM production in DEPZ for Korean fashion brands, and early preparation for possible incentive changes as EPZs transition toward the SEZ model.

Outlook and Strategic Implications

Assess EPZ Footprint
Review 28 firms across 3 zones
↓
Diversify Items
Raise non-garment share from 20% to 30%
↓
Expand KEPZ
Phase 2 adds 161 acres
↓
Prepare for SEZ Shift
Monitor incentive changes
↓
Launch New Investment
Electronics, leather, IT
↓
Target $1.2B Exports
2026 goal
Korea-Bangladesh Import Statistics by 4-Digit HS Code (2022 to Nov. 2023)Examine item composition using HS-code trade data
2026 Market Entry Strategy, Section 6: Promising Industries and Export ProjectsSee investment directions by high-potential industry

Across Bangladesh's three major EPZs, 28 Korean companies have invested about $420 million and generate around $850 million in annual exports. The operating base is still centered on garments, but the export mix is broadening toward electronics, leather, and food processing. With KEPZ phase-two expansion and a possible shift toward the SEZ framework, Korean firms should treat Bangladesh's EPZ platform as both a manufacturing base and a longer-term strategic investment corridor.

EPZKEPZCEPZDEPZExport Processing Zone
Analysis of Korean Export Items in Bangladesh EPZs (KEPZ + CEPZ + DEPZ) | Dhaka Trade Portal