Bangladesh and South Korea signed a Comprehensive Economic Partnership Agreement (CEPA) on 4 August 2026 at the Ministry of Commerce in Dhaka.
Commerce Minister Khondaker Abdul Muktadir said 97% of Bangladeshi products will receive preferential tariff treatment in the South Korean market, while 87% of South Korean products will receive similar benefits in Bangladesh.
Muktadir described South Korea as a roughly $2 trillion economy and said the agreement was the government's first free-trade-type deal, reached within five months of taking office.
He said Bangladesh's priority products, including ready-made garments, leather and jute goods, would gain duty benefits, while Bangladesh would also benefit from imports of agricultural products, plastics and spare parts from South Korea.
Muktadir said Bangladesh aims to build a $1 trillion economy by 2034, requiring about 8% growth and more foreign investment attracted through agreements such as the CEPA.
South Korean Trade Minister Yeo Han-ku said the two countries' economic relationship began with textiles 56 years ago and that both sides need to diversify their traded goods.
Yeo said Korean companies would be more interested in investing in Bangladesh once the CEPA takes effect and expressed hope that the new Bangladeshi government would strengthen the economy.
Total bilateral trade between the two countries stood at about $1.39 billion, with Bangladeshi exports of about $491.73 million and imports from South Korea of about $902.90 million, leaving a Bangladeshi trade deficit of roughly $411 million.