FOUR DECADES OF BANGLADESH-SOUTH KOREA RELATIONS: ECONOMIC DIMENSIONS

This article provides a comprehensive analysis of the economic dimensions of the relationship between Bangladesh and the Republic of Korea (South Korea) over the four decades since the establishment of diplomatic ties. It traces the evolution of the partnership from a modest one to a deep and significant economic relationship. The study focuses on the two key pillars of this relationship: trade and investment. The research examines the significant role of South Korean Foreign Direct Investment (FDI) in the development of Bangladesh's export-oriented manufacturing sector, particularly in the ready-made garment (RMG) industry and in the establishment of the country's first Export Processing Zones (EPZs). The paper also analyzes the bilateral trade patterns, noting the importance of South Korea as a source of capital machinery and industrial raw materials for Bangladesh. The analysis concludes that the Bangladesh-South Korea economic partnership has been a remarkably successful one and serves as a model of mutually beneficial South-South cooperation.

Over the past four decades, the economic relationship between Bangladesh and South Korea has grown into one of Bangladesh's most important and successful partnerships. This paper provides a detailed historical and contemporary analysis of its key economic dimensions. The study begins by charting the crucial role that South Korean investors played as pioneers in the development of Bangladesh's ready-made garment sector. It details how the first wave of South Korean FDI into the EPZs brought not only capital but also technology, management expertise, and crucial linkages to global supply chains, effectively helping to kick-start the country's export-oriented industrialization. The core of the article is a detailed examination of the contemporary trade and investment relationship. It analyzes the composition of bilateral trade and discusses the significant and long-standing presence of major South Korean companies in various sectors of the Bangladeshi economy, from textiles to electronics. The paper argues that the relationship is a textbook example of a successful partnership based on economic complementarities, where South Korea's capital and technology have been combined with Bangladesh's labor and market access. The findings reveal a robust and mature economic relationship. The paper concludes by exploring the future potential for deepening this partnership, particularly in the areas of infrastructure development and the transfer of higher-end technologies, as Bangladesh seeks to move up the industrial value chain.