Bangladesh and South Korea have signed a Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in strengthening bilateral trade and investment as Bangladesh prepares for its graduation from the Least Developed Country (LDC) category.
The agreement provides preferential market access for 97% of Bangladeshi products entering South Korea, while 87% of South Korean goods will receive similar preferential access in the Bangladeshi market. The move is expected to enhance trade competitiveness, expand market opportunities, and encourage greater foreign investment between the two countries.
The agreement was jointly announced by Commerce Minister Khandakar Abdul Muktadir and South Korean Trade Minister Han-Koo Yeo during a press conference in Dhaka. Both ministers emphasized that the CEPA would deepen economic cooperation, strengthen bilateral trade relations, and create new opportunities for businesses and investors.
According to the Export Promotion Bureau (EPB), Bangladesh exported goods worth $421 million to South Korea during FY2025–26, reflecting a 9% decline compared to the previous fiscal year. Meanwhile, imports from South Korea reached $1.2 billion in FY2024–25, up 33% from $903 million a year earlier. During the first half of FY2025–26, Bangladesh imported $614 million worth of goods from South Korea, according to Bangladesh Bank.
The CEPA is Bangladesh’s second major economic partnership agreement signed this year, following a similar agreement with Japan. The government expects the deal to support the country’s export competitiveness in the post-LDC era by improving market access, attracting foreign direct investment, and strengthening long-term economic cooperation with one of Asia’s leading economies.
