Bangladesh and South Korea have agreed to strengthen their economic partnership, with a focus on investment, advanced technology, artificial intelligence (AI), infrastructure development, innovative financing and private sector cooperation.
The commitment was reinforced on the second working day of an official visit to South Korea by a Bangladesh delegation led by Finance and Planning Minister Amir Khosru Mahmud Chowdhury. The delegation held meetings with senior Korean government officials, financial institutions and leading technology companies to explore opportunities for expanding bilateral economic cooperation, according to a press release issued on Wednesday (4 November).
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The Bangladesh delegation held discussions with the Export-Import Bank of Korea (KEXIM), Korea Investment Corporation (KIC), major Korean companies and technology institutions.
Bangladesh highlighted South Korea’s potential role in its next phase of economic transformation through development financing, investment, technology transfer, industrial partnerships and institutional capital.
$3 Billion EDCF Framework Cooperation
During a meeting with KEXIM Chairman and Chief Executive Officer Hwang Kiyeon, the two sides reviewed the $3 billion Economic Development Cooperation Fund (EDCF) framework arrangement for 2023–2027.
They discussed several priority projects, including the Dhaka Mass Rapid Transit Line-5 Southern Route, the Matlab Uttar–Gazaria Bridge and the procurement of 260 broad-gauge passenger carriages.
KEXIM officials said EDCF priorities were currently under review and that project proposals would be considered in consultation with relevant Korean authorities.
Bangladesh proposed developing a clear roadmap for utilising the remaining EDCF resources and identified emerging areas of cooperation, including AI, digital transformation, smart infrastructure and resilient supply chains.
Bangladesh Seeks Broader Strategic Economic Partnership
In a separate meeting with Chang Huh, Second Vice-Minister of South Korea’s Ministry of Finance and Economy, Finance and Planning Minister Amir Khosru Mahmud Chowdhury called for expanding bilateral relations into a broader strategic economic partnership.
The Bangladesh delegation highlighted investment opportunities in trade, advanced manufacturing, energy, shipbuilding and digital technologies.
Bangladesh also welcomed South Korea’s ongoing technical support for the master planning of the Asian Development Bank (ADB)-supported Integrated Growth Network Development (IGND) initiative.
The finance minister encouraged South Korea to increase its involvement in the initiative through greater participation in financing and implementation.
The Korean side expressed readiness to continue discussions on AI, digital transformation, alternative financing, future EDCF cooperation and broader engagement in the IGND initiative.
Proposed $1–2 Billion Bangladesh Sovereign Fund Discussed
Discussions with Korea Investment Corporation focused on mobilising institutional investment for infrastructure, renewable energy, digital infrastructure and other commercially viable projects in Bangladesh.
The two sides discussed the proposed Bangladesh Sovereign Fund, with a potential size of $1–2 billion, as a possible investment vehicle to attract institutional capital.
They also explored opportunities to combine equity investment from KIC with financing from KEXIM, potentially involving Korean fund managers.
The discussions aimed to identify financing mechanisms capable of supporting long-term investment in Bangladesh’s infrastructure and emerging economic sectors.
AI and Digital Transformation Emerge as Key Priorities
Artificial intelligence emerged as a promising area of Bangladesh-South Korea cooperation, with Bangladesh’s AI development priorities closely aligned with the Korean government’s focus on advanced technologies and digital transformation.
During discussions with LG AI Research, the Bangladesh delegation explored opportunities to develop a large language model (LLM) tailored to Bangladesh’s linguistic and cultural context.
The two sides also discussed potential applications of AI in education, healthcare, manufacturing and public services.
Bangladesh highlighted its ambition to become a regional hub for AI and data centres, seeking technological expertise and investment partnerships to develop the necessary infrastructure.
Discussions with South Korean AI technology company FuriosaAI focused on strengthening Bangladesh’s higher-value AI ecosystem and exploring opportunities in advanced computing technologies.
KEXIM also expressed interest in exploring infrastructure projects incorporating artificial intelligence.
Korean Companies Explore Investment Opportunities in Bangladesh
The Bangladesh delegation held discussions with leading Korean companies on investment opportunities in energy, liquefied natural gas (LNG), renewable energy, shipbuilding, advanced manufacturing, urban development and infrastructure.
The discussions emphasised moving beyond traditional project-based cooperation towards long-term investment and public-private partnerships (PPPs).
During a meeting with Samsung C and T, Bangladesh explored potential cooperation in infrastructure, renewable energy, urban development, tourism and PPP projects.
The discussions covered rooftop and utility-scale solar power projects, as well as selected urban development opportunities.
Samsung C and T expressed interest in expanding its engagement beyond engineering, procurement and construction (EPC) contracts towards longer-term investment arrangements.
Both sides agreed to continue technical discussions on priority projects to identify potential areas of cooperation.
At a Korean investment business roundtable organised by Youngone, the Bangladesh delegation highlighted investment opportunities in light engineering and component manufacturing.
Bangladesh encouraged Korean companies to pursue joint ventures, facilitate technology transfer and integrate Bangladeshi suppliers into Korean industrial value chains.
The discussions also explored ways to strengthen industrial partnerships and expand Bangladesh’s participation in higher-value manufacturing and international supply chains.
Both Countries Aim to Expand Economic Cooperation
The meetings reflected a shared interest in expanding Bangladesh-South Korea relations beyond traditional development cooperation towards a broader economic partnership based on trade, investment, technology and mutually beneficial opportunities.
Bangladesh welcomed the growing interest of Korean government institutions, financial organisations, businesses and technology companies in the country’s development and investment priorities.
The delegation also emphasised the importance of combining development finance with private investment, institutional capital and technological expertise to support Bangladesh’s long-term economic transformation.
Both sides agreed to continue consultations to translate the discussions into concrete projects, investment partnerships and mutually beneficial outcomes.
The engagements are expected to contribute to stronger bilateral economic relations, greater technological cooperation and new investment opportunities between Bangladesh and South Korea.
