Bangladesh’s exports to South Korea have almost tripled in the last five years due to duty-free benefits and exporters’ desire to diversify their export destinations by exploring the 13th largest economy in the world.
In FY ’23, exports to the East Asian nation soared 18 percent year-on-year to US $ 624 million.
According to the Export Promotion Bureau (EPB), the increase in shipments persisted in the first half of the current fiscal year, increasing 7 per cent year-over-year to exceed US $ 330 million.
The surge in exports to South Korea coincides with the fact that the majority of Bangladesh’s shipments are still focused on two markets: Europe and North America.
Nine western markets, including the US, UK and Germany, account for nearly two-thirds of Bangladesh’s apparel exports, which comprise around 85 per cent of the country’s annual export receipts.
According to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), exports to markets categorised as non-traditional have increased recently, decreasing the share of exports to traditional markets.
The majority of Bangladeshi items have been eligible for duty-free and quota-free entrance into South Korea since January, which has significantly increased exports.
“We have been talking about cutting dependence on traditional markets and are working aggressively for this,” said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
Additionally, manufacturers were encouraged until 31st December of last year by the Government’s policy support in the form of a 4 per cent cash incentive on exports to new markets. However, the rate was declined to 3 per cent from 1st January this year.
Hatem informed that exports to Japan were growing as well.
China is gradually moving away from apparel as a result of growing wages in the industry, he added, and buyers from Korea and Japan are reducing their reliance on the country.
According to EPB data, 86 per cent of all exports to South Korea in FY ’23 were made up of apparel. Hatem, who also exported knitwear to South Korea, stated that t-shirts, polos, and jackets are among the primary commodities heading to the East Asian country.
“We are working to boost exports to non-traditional markets. We have already been able to create a good position in the South Korean market,” said BGMEA President Faruque Hassan.
Hassan added that he anticipates more growth in shipments to South Korea in 2024.
Bharat Tex Special Report 2026 
