2023 Korea-Bangladesh Trade Overview
Bilateral trade between Korea and Bangladesh reached approximately $2.2 billion in 2023. Korea's exports to Bangladesh totaled about $1.2 billion, while imports from Bangladesh came to roughly $1.0 billion, allowing Korea to maintain a trade surplus of around $200 million. Total trade declined by about 3% from 2022, but this appears to have been a temporary adjustment driven by the global slowdown and Bangladesh's foreign exchange liquidity constraints.
On a quarterly basis, exports weakened noticeably in the first half of the year (Q1-Q2), then recovered in the second half (Q3-Q4) alongside improving conditions in Bangladesh. Trade volume in Q4 reached the year's highest level, reinforcing expectations for renewed growth in 2024.
Quarterly Trade Trends
| Category | Q1 (Jan-Mar) | Q2 (Apr-Jun) | Q3 (Jul-Sep) | Q4 (Oct-Dec) | Annual |
|---|---|---|---|---|---|
| Korean Exports | 275 | 260 | 310 | 355 | 1,200 |
| Korean Imports | 240 | 230 | 260 | 270 | 1,000 |
| Total Trade | 515 | 490 | 570 | 625 | 2,200 |
| Trade Balance | +35 | +30 | +50 | +85 | +200 |
| YoY Change (Exports) | -8% | -10% | -2% | +5% | -5% |
| YoY Change (Imports) | +2% | -3% | +3% | +4% | +1% |
The most notable feature of the quarterly trend was the export contraction in Q1-Q2 followed by a rebound in Q3-Q4. The main reason for weaker first-half exports was the Bangladesh central bank's tighter restrictions on opening letters of credit (LCs). As imports were suppressed to protect foreign reserves, demand for Korean machinery and industrial materials temporarily softened.
Analysis of Korea's Exports to Bangladesh by Product
Korea's main export items to Bangladesh are textile machinery, synthetic resins, steel and metal products, electronic components, and chemical materials. In 2023, the relative share of textile machinery and resins edged down, while electronic components and automotive parts expanded, indicating a gradual shift in trade composition.
| Product | Export Value | Share | YoY | Main HS Codes |
|---|---|---|---|---|
| Textile machinery and parts | $280M | 23.3% | -8% | HS 8445-8453 |
| Synthetic resins and chemical materials | $220M | 18.3% | -6% | HS 3901-3926 |
| Steel and metal products | $180M | 15.0% | -3% | HS 7208-7326 |
| Electronic components and semiconductors | $130M | 10.8% | +12% | HS 8541-8542 |
| Vehicles and auto parts | $90M | 7.5% | +15% | HS 8703-8708 |
| Food and agricultural products | $60M | 5.0% | +5% | HS 1901-2106 |
| Others | $240M | 20.0% | -2% | Various |
Deeper Look at Growth Products
The standout growth items in 2023 were electronic components (+12%) and automotive parts (+15%). Bangladesh's fast-growing smartphone market drove greater parts imports for Samsung's local operations, while policies to foster vehicle assembly expanded demand for CKD (Complete Knock Down) components.
Analysis of Imports from Bangladesh by Product
Korea's imports from Bangladesh are dominated by garments (RMG), followed by leather and footwear, frozen seafood, and jute products. In 2023, garment imports declined slightly, while imports of seafood and leather goods recorded gains.
| Product | Import Value | Share | YoY |
|---|---|---|---|
| Garments (RMG) | $650M | 65.0% | -2% |
| Leather and footwear | $120M | 12.0% | +8% |
| Frozen seafood | $80M | 8.0% | +10% |
| Jute and textiles | $40M | 4.0% | -5% |
| Agricultural products | $30M | 3.0% | +3% |
| Others | $80M | 8.0% | +2% |
Trade Balance Structure and Implications
The Korea-Bangladesh trade balance remains structurally favorable to Korea. Korea exports higher value-added machinery and industrial materials, while Bangladesh exports labor-intensive goods such as garments and leather products. This creates a complementary trade structure, although Bangladesh's LDC graduation and industrial upgrading are likely to reshape that pattern over time.
Trade Outlook for 2024-2025
Given Bangladesh's improving macroeconomic stability, a more normalized FX market, and continued infrastructure investment, Korea-Bangladesh trade is expected to return to a recovery path in 2024-2025. In particular, greater use of Bangladesh as a production base to manage US tariff exposure could create additional room for Korean exports of machinery, materials, and parts.
| Category | 2023 (Actual) | 2024 (Estimate) | 2025 (Forecast) |
|---|---|---|---|
| Korean Exports | 12.0 | 13.5 | 15.0 |
| Korean Imports | 10.0 | 10.5 | 11.0 |
| Total Trade | 22.0 | 24.0 | 26.0 |
| Trade Balance | +2.0 | +3.0 | +4.0 |
| Growth Rate | -3% | +9% | +8% |
Korea-Bangladesh trade in 2023 went through a temporary adjustment as FX constraints weighed on Bangladesh's import capacity, but the structural complementarity of the bilateral trade relationship and Bangladesh's long-term growth potential still point toward recovery and expansion. Korean exporters should use this adjustment phase to deepen local networks and develop new product lines for the next cycle of growth.