CEPA agreement on track to boost Korean investment in Bangladesh

Bangladesh and South Korea have agreed to finalize the Comprehensive Economic Partnership Agreement (CEPA) to take bilateral economic relations to new heights. The agreement is being described as a timely initiative that opens up new avenues for investment and trade cooperation on the eve of the country’s graduation from LDC (least developed country). Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashiq Chowdhury and South Korean Trade Minister Yoo Han-koo met in Seoul on Thursday (October 23). BIDA Chairman Ashiq Chowdhury welcomed the initiative and said, “South Korea has been a long-standing trusted development partner of Bangladesh. We want CEPA to be finalized quickly. If this agreement comes into effect, Korean investment in various sectors including electronics, mobility, renewable energy, textiles and infrastructure will further increase.”

He further said that based on direct discussions with Korean investors, BIDA has started working to simplify, speed up and modernize the complexities related to customs, remittance and taxes that they have mentioned. To this end, initiatives have been taken to implement BIDA’s 32-point ‘Investment Climate Reform Agenda’, which is progressing under the supervision of the Office of the Chief Advisor. During the exchange of views, South Korean Trade Minister Yoo Han-koo praised Bangladesh’s rapid progress. He said, “Bangladesh is now moving forward rapidly. Bangladesh’s progress in modern manufacturing and services is truly commendable. We are eager to be a partner in this development journey.”

Minister Yeo also said that he has visited Bangladesh several times in the past as a World Bank official and has always observed Bangladesh’s progress closely. BIDA Chairman Ashiq Chowdhury invited the South Korean Commerce Minister to visit Bangladesh. He said, “We want the Korean business delegation to come to Bangladesh and see firsthand how we have brought about real changes in infrastructure, digital services and business reforms.” It is worth noting that currently, South Korea’s investment in Bangladesh is about 1.56 billion US dollars. More than 150 Korean companies are operating in the country. South Korea is the fifth largest foreign investor in Bangladesh. According to a United Nations report, Korea’s foreign investment in 2024 was 49 billion US dollars. The Bangladesh delegation, led by BIDA Executive Chairman Ashiq Chowdhury, will stay in South Korea until October 25. During the visit, they participated in an investment seminar titled ‘Gateway to Growth: Invest in Bangladesh’ organized in Seoul and also held several government-to-private (G2B) meetings with top Korean industry groups.