Over the past 50 years since the establishment of diplomatic relations between Bangladesh and South Korea, the two Asian economies have seen their relationship grow in various fields, including economic, cultural, and development cooperation. However, Bangladesh-Korea bilateral trade has not increased since peaking at $3 billion in 2022. Bangladesh’s share of garment exports to the South Korean market remains low compared to that of other competitors, such as China, Vietnam, and Indonesia. While these countries benefit from free trade agreements with South Korea, Bangladesh does not have one. Recently, Bangladesh and South Korea have begun negotiations to accelerate trade and investment growth through a bilateral Economic Partnership Agreement (EPA). Both countries announced the commencement of these negotiations by signing a memorandum of understanding in November 2024. In an exclusive interview with Dhaka Tribune, South Korean Ambassador Park Young-sik discussed why and how the two friendly nations should strive for growth by making additional efforts. Below are excerpts from the interview conducted last week in Dhaka
Dhaka Tribune: Bangladesh attached great importance to its relations with the Republic of Korea, a tested and trusted friend and important development partner. Your Excellency, how do you evaluate the current state of relationship between these two countries and how it could be further strengthened in near future?
Ambassador Young-sik: Korea and Bangladesh established diplomatic ties on December 18, 1973. Over the last 5 decades, our two countries have witnessed a remarkable journey of cooperation in various sectors, including trade, investment, development, and people-to-people exchanges.
Korean companies have been a long-standing partner of Bangladesh, contributing significantly to the growth and success of the RMG industry. In recent years, we have witnessed remarkable developments in diversifying areas of cooperation beyond RMG, particularly in manufacturing and infrastructure.
Korea does not pursue strategic interests beyond our economic cooperation. Over the last fifty years, collaboration in the RMG sector has been a driving force behind our bilateral relations. I believe that the Bilateral EPA, just announced to enter into the negotiation, could serve as the next motor engine to elevate our partnership to new heights in the next fifty years.
Dhaka Tribune: What's the current bilateral business volume and how could we accelerate it further to the fullest potential? Do you think Bangladesh is still able to tap the full benefits of duty free, preferential access to the Korean market?
Ambassador Young-sik: Korea provides preferential market access to approximately 95% of Bangladeshi products under the Asia Pacific Trade Agreement (APTA) and World Trade Organization (WTO) arrangements. However, bilateral trade has not grown since reaching its peak of $3 billion in 2022. Both countries must make additional efforts to revive and accelerate trade growth.
Bangladesh’s export of ready-made garments to Korea is increasing steadily each year. Yet, the current market share of around 5% remains low, highlighting significant potential for expansion. Korea imports these products from China (which benefits from a bilateral free trade agreement – FTA, and the Regional Comprehensive Economic Partnership – RCEP), Vietnam (bilateral FTA, Korea-ASEAN FTA, and RCEP), and Indonesia (bilateral CEPA, Korea-ASEAN FTA, and RCEP). These countries hold a competitive advantage in the Korean market due to their FTAs with Korea. An economic partnership agreement (EPA) between Korea and Bangladesh could boost Bangladesh's share of Korea's RMG-related imports.
On November 28, both countries announced plans to negotiate a bilateral EPA. This agreement aims to go beyond the current Generalized System of Preferences (GSP) benefits, significantly promoting bilateral trade and investment in mutually beneficial ways.
Dhaka Tribune: Korea is 5th biggest source of Bangladesh's foreign direct investment (FDI). How could Bangladesh attract more Korean investment?
Ambassador Young-sik: There are several areas that need to be addressed to attract foreign investment. Delays and complicated procedures in visa issuance, particularly for business-related travel, can significantly hinder the flow of trade and investment. Such delays result in missed opportunities and disrupt collaborative efforts between businesses in both countries.
Additionally, the complex and often inconsistent customs processes in Bangladesh add unnecessary costs and delays to trade. Issues such as arbitrary procedural delays and a lack of transparency in customs clearance undermine investor confidence and impede the smooth flow of goods. Simplifying business processes and addressing problems like corruption would not only boost investor confidence but also make trade operations more efficient.
Finally, the absence of direct air and maritime cargo links between Korea and Bangladesh results in longer and more expensive shipments. Establishing direct cargo lines would enhance logistics efficiency and facilitate faster, more cost-effective trade.
Dhaka Tribune: Could Korea assist Bangladesh in the future in the areas of technology transfer, ICT, Artificial Intelligence, industrial development etc.
Ambassador Young-sik: The businessmen of both countries can foster bilateral cooperation and collaboration in sectors such as footwear, ICT, light industries, pharmaceuticals, shipbuilding, the blue economy, deep-sea fishing, agriculture and agricultural machinery, climate change, and carbon trading schemes. Korean companies possess cutting-edge technologies, while Bangladeshi companies have the potential to initiate new ventures. I hope that innovative investments combining technology and capital will flourish in Bangladesh.
Both countries signed an MoU on November 28 to establish a framework for trade and investment promotion when Bangladesh’s Commerce Advisor met Korea’s Trade Minister. They will collaborate in areas outlined by the TIPF, including industrial development, human resource development, trade and investment promotion, natural resources and energy development, technology, research and innovation, and the digital, green, and bio economies.
Dhaka Tribune: Bangladesh is at the receiving end of thousands of persecuted refugees from across its border, from Myanmar. Could Korea assert its power in making Myanmar agree to an early repatriation of over a million Rohingyas?
Ambassador Young-sik: Korea has provided Rohingya refugees with humanitarian assistance amounting to $3-5 million annually since 2017. This year, the total amount of our humanitarian aid reached $36.6 million. In addition to this funding, Korea made its first rice donation of 15,000 tons, sufficient to support one million Rohingya refugees for 1.5 months. Korea’s aid has supported various humanitarian activities under the Joint Response Plan, including the provision of food, LPG, and education.
As the Rohingya refugee crisis has persisted for over seven years, fatigue has set in, and no realistic solution appears feasible at this point. The Bangladeshi government maintains a firm stance that all Rohingya refugees should return to Rakhine State, Myanmar. However, the current conditions in Rakhine State are not yet conducive to receiving refugees. Although Korea lacks direct means to facilitate the early return of Rohingya refugees, we will continue to support efforts toward their eventual return.
Dhaka Tribune: Several thousand expatriate Bangladeshis are contributing to the Korean economy. Can Korea take more skilled professionals, labour from Bangladesh?
Ambassador Young-sik: Korea has emerged as a noteworthy destination for Bangladeshi migrant workers. Between 2008 and 2023, approximately 33,000 workers went to Korea under the Employment Permit System. Korea’s labor laws are equally applied to both domestic and foreign workers; therefore, the salaries of Bangladeshi workers are much higher than those of workers dispatched to other countries. The Korean government is also committed to ensuring that migrant workers benefit from safe and comfortable working environments.
There is significant potential to further increase the number of Bangladeshi workers in Korea, particularly skilled workers. As Korea faces labor shortages in certain industries, especially shipbuilding, Bangladeshi manpower can help meet this demand. Efforts are being made to train Bangladeshi welders through both private and public training centers, including the Bangladesh-Korea Technical Training Center in Mirpur, Dhaka, and Chattogram.
To increase the number of Bangladeshi workers in Korea, it is equally important to improve Korean language skills to meet the labor market's requirements. There is a perception that Bangladeshi workers frequently change workplaces, leading many Korean employers to prefer workers from other countries. Pre-departure training programs are crucial for teaching the Korean language and familiarizing workers with Korea’s work culture.
Dhaka Tribune: How could Korea help more Bangladeshi students pursue higher education in your country and provide them with scholarships in various fields of science education, vocational training etc.
Ambassador Young-sik: Foreign students are offered opportunities to study in Korea through various scholarship programs. One of the most prominent is the Global Korea Scholarship (GKS), provided by the Korean government. GKS offers benefits such as round-trip airfare, full tuition coverage, a monthly allowance, Korean language training fees, and settlement support. This scholarship is available for both undergraduate and graduate studies and can be applied for through the Korean embassy in the applicant’s country (Embassy Track) or directly via a Korean university (University Track).
Additionally, many Korean universities have their own scholarship programs to attract international students. Examples include the Global Scholarship Program at Seoul National University, the Global Leader Scholarship at Korea University, and the Underwood International College Scholarship at Yonsei University. These scholarships provide benefits such as tuition waivers and dormitory accommodations. Scholarships are typically awarded based on academic performance, Korean language proficiency (TOPIK scores), and other achievements.
Dhaka Tribune: Many of today's Bangladeshi youths are big-time fans of Korean drama, music. Can this Korean hallyu wave of pop culture give shape to a greater cultural exchange between our two friendly Asian countries?
Ambassador Young-sik: The Korean Wave is a global cultural phenomenon encompassing K-pop music, K-dramas, movies, fashion, K-beauty, and Korean cuisine. Iconic groups like BTS and BLACKPINK, along with global hits such as Parasite and Squid Game, have showcased Korean creativity and innovation to the world. Beyond entertainment, K-beauty products, Korean cuisine, and traditional culture have also gained significant international attention.
The appeal of the Korean Wave lies in its ability to blend modern innovation with a deep respect for tradition, creating a unique cultural identity that resonates globally. This has not only elevated Korea’s soft power but also strengthened its cultural and economic ties with other countries, including Bangladesh. K-Wave fans are not only enjoying K-content but are also engaging with the Korean language and culture through social media and educational opportunities.
In Bangladesh, the popularity of the Korean Wave is growing steadily. BD K-Family, with more than 60,000 members, actively participates in various events, such as the K-dance festival on November 15, hosted by the Korean Embassy, and the Korean cuisine and K-dance festival on December 14, organized by the Korea-Bangladesh Chamber of Commerce & Industry. I am eager to see this cultural exchange deepen, fostering greater understanding and friendship between Korea and Bangladesh.
Dhaka Tribune: Anything else you like to add?
Ambassador Young-sik: Korea is fully committed to enhancing mutually beneficial relations between the two countries. In addition to our continued investment in the RMG industry, Korea has provided official development assistance through EDCF and grants. PPP serves as another platform for mobilizing the funds needed for infrastructure development in Bangladesh.
Looking to the future, Bangladesh is set to graduate from LDC status in 2026. This milestone means Bangladesh should focus not only on quantitative growth but also on its quality. Such quality must be driven by innovation, knowledge, and technology, areas where foreign companies can make substantial contributions. Bangladesh has great potential for economic development, and Korea, along with its companies, is ready to support Bangladesh on this journey.
