Diplomatic & Policy Framework of Bangladesh–Korea relation from 2009 to 2025

This document analyzes the evolution of diplomatic and policy frameworks between Bangladesh and the Republic of Korea from 2009 to 2025. It highlights the relationship's maturation from a basic diplomatic partnership to a comprehensive engagement poised for a strategic elevation. The key drivers of this change include Korea's status as Bangladesh's fifth-largest FDI provider and the more than $3 billion in bilateral trade in 2023.

The report notes a convergence of Bangladesh's impending LDC graduation in November 2026 with Korea's expanded cooperation frameworks. Korea has initiated negotiations on an Economic Partnership Agreement (EPA) to address potential trade challenges for Bangladesh post-LDC graduation. Korea's development assistance has also seen an unprecedented scale expansion. This includes a new $7 billion Economic Development Promotion Facility (EDPF) for large-scale infrastructure projects and a significant increase in the Economic Development Cooperation Fund (EDCF) to $3 billion for 2023-2027, making Bangladesh Korea's second-largest ODA recipient.

The document also explores the strategic alignment of both nations' Indo-Pacific outlooks, noting areas of strong convergence such as a rules-based order, economic cooperation, and connectivity. It concludes that with proper policy coordination, the relationship is well-positioned to achieve a strategic partnership, offering mutual benefits in a complex regional environment.



Bangladesh Investment Gateway (BIG)
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1. Diplomatic & PolicyDiplomatic & Policy
Framework of Bangladesh-Framework of Bangladesh-
Korea Relations (2009-Korea Relations (2009-
2025)2025)
Evolution from Diplomatic Partnership to Strategic Engagement
Rashedur Rahman & Ehsan Tanim
September 2025
I Strategic Partnership
Development Cooperation
Indo-Pacific Alignment
Post-LDC Graduation
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2. 
Evolution of Relations
From basic diplomatic relationship (1973) to comprehensive
partnership poised for strategic elevation

Diplomatic Framework
Matured through regular Foreign Office Consultations, expanding
scope to AI and biotechnology

Economic Fundamentals
Korea is fifth-largest FDI provider ($1.3B) with bilateral trade
crossing $3B in 2023

Strategic Timing
Convergence of Bangladesh's LDC graduation with Korea's
expanded cooperation creates exceptional opportunities
$3B+
Korea's Development Cooperation
2026
Bangladesh's LDC Graduation
2025
Target for Strategic Partnership
Executive Summary
I
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3. Institutional Mechanisms and Terminology Changes
Foreign Office Consultations (FOC) established in 2009, evolving from "policy consultation" to "foreign office consultation"
Timeline Construction and Consultation Evolution (2009-2025)
I
2009-2014
Foundational Phase
Basic cooperation frameworks
Trade & investment focus
KEPZ project emphasis
2014 Seoul consultation
2022 Revival
Strategic Re-engagement
Third consultation in Dhaka
After 8-year gap
Bangladesh as middle-income country
Increased development cooperation
2025
Strategic Partnership
Fourth consultation in Seoul
Exploring strategic partnership
AI & biotechnology focus
Energy transition cooperation
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4. 
Korea's Indo-Pacific Strategy
December 2022

Bangladesh's Indo-Pacific Outlook
April 2023
Areas of Strong Convergence

Rules-based Order
International law & multilateral frameworks

Connectivity
Infrastructure & regional integration

Economic Cooperation
Trade, investment & supply chains

Maritime Security
Sea lanes & maritime domain
Strategic Divergences
Policy Vocabulary Mapping: Indo-Pacific Alignment and
Divergence
I
Values vs. Development
Korea: "Values-based partnerships"
Bangladesh: "Inclusive development for all"
Security Approach
Korea: Security cooperation elements
Bangladesh: "Military de-escalation"
China Positioning
Korea: Explicitly mentions China as "key partner"
Bangladesh: Avoids direct great power references
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5. Institutional Architecture and Project Portfolio
Korea's development assistance operates through three primary mechanisms with unprecedented scale expansion
Korea's Development Cooperation Frameworks in Bangladesh
I

EDCF
Economic Development Cooperation Fund
$3 Billion
Increased from $700M (2021-2025) to $3B (2023-2027)
Bangladesh is Korea's second-largest ODA recipient
globally
40-year repayment period, 15-year grace period
%0.01%-0.05% interest rates among the most favorable
globally
Flagship Projects
Kalurghat Railway Bridge ($815M)
MRT Line 4 cooperation
CNG bus procurement

KOICA
Korea International Cooperation Agency
$20M Annually
$20 million annually in technical assistance
Focus on innovation and capacity building
Sectoral focus: ICT innovation, education (TVET),
public health
Infrastructure technology transfer programs
Major Projects
AI Innovation Project ($28.5M, 2026-2035)
Statistics capacity building ($9.65M)
Smart bridge maintenance technology ($8.85M)

EDPF
Economic Development Promotion Facility
$7 Billion
New mechanism with expected $7B allocation (2023-
2027)
Focus on large-scale infrastructure development
Market-funded loans with government interest
subsidies
Enabling larger project financing capacity
Target Projects
Dhaka-Chittagong Expressway
MRT Line-5 southern route
Dhaka Ring Road
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6. Strategic Complementarity Analysis
Bangladesh's LDC graduation scheduled for November 2026 creates challenges and opportunities that align with Korea's development cooperation tools
Post-LDC Graduation Alignment Assessment
I
Trade Preferences & Market Access
74%
of Bangladesh's exports face potential tariff increases post-graduation
Korea initiated EPA negotiations in late 2024
Aiming for completion by end-2025
Strategic foresight in addressing Bangladesh's trade vulnerabilities
Concessional Finance Transition
0.01%
interest rates among the most favorable globally
Korea counter-cyclically increased commitment with $3B EDCF expansion
New EDPF framework for large-scale infrastructure
40-year repayment period, 15-year grace period
Skills & Productivity Enhancement
11,500
job quota for 2024 (highest ever)
Employment Permit System expansion
KOICA AI expertise development: $28.5M program
Technology transfer: bridge maintenance, ICT, digital governance
Export Diversification Support
84%
of exports concentrated in RMG sector
Korean electronics and semiconductor companies considering expansion
KIDO expanding workforce from 4,200 to 10,000 workers
New sectors: electronics, digital industries, clean energy technology
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7. Strategic Partnership Potential and Policy Opportunities
I
Institutional Elevation Framework
4th
FOC agreement to explore strategic partnership elevation
Recognition of mature bilateral relations
Shared strategic interests and priorities
Systematic diplomatic framework maturation
Economic Integration Deepening
$3B
bilateral trade in 2023 with strong upward trajectory
Korean FDI: $1.3B accumulated, fifth-largest investor
Korea becoming second-largest bilateral donor
$3+ billion commitments in development cooperation
Complementary Strategic Needs
Infrastructure Requirements: Bangladesh's needs align with Korea's expertise and
EDCF/EDPF capabilities
Market Diversification: Bangladesh offers growth market and supply chain partnership
for Korea
Regional Connectivity: Both benefit from enhanced connectivity through Bay of Bengal
and Indo-Pacific integration
Policy Reform Opportunities
Regulatory Modernization: Streamlining investment procedures, IP protection, digital
governance
Educational Alignment: Expanding STEM and TVET education, Korean language
training
Industrial Coordination: SEZ development, technology transfer, joint projects
Financial Development: Enhanced implementation capacity, PPP framework
strengthening
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8. 
Relations evolved from basic bilateral ties to comprehensive partnership
positioned for strategic elevation

Consultation mechanism's institutionalization and increasing ambition scope
demonstrate mature diplomatic relations

Korea's unprecedented development cooperation expansion signals strategic
commitment to Bangladesh's development trajectory

Timing convergence of Bangladesh's LDC graduation with Korea's expanded
cooperation creates exceptional opportunities

Indo-Pacific strategic alignment provides framework for broader regional
cooperation despite different emphases
$10B+
Combined EDCF/EDPF commitments from Korea
Future Outlook
With proper policy coordination and reform
implementation, the relationship is well-positioned to
achieve strategic partnership status, offering mutual
benefits in an increasingly complex regional
environment.
Conclusion: Toward Strategic Partnership
I
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