South Korea turns to Bangladesh, Southwest Asia in bid to cut reliance on US, China
South Korea and Bangladesh launched talks in August on a Comprehensive Economic Partnership Agreement (CEPA), which would cover investment, services, intellectual property and regulatory issues beyond tariffs
South Korea is stepping up efforts to expand trade with Southwest Asia, targeting Bangladesh as a key partner, as Seoul seeks to reduce its heavy reliance on the United States and China, its top trade negotiator said.
"Southwest Asia is home to 2 billion people, or 25% of the global population. It holds immense growth potential as an attractive consumption market," Trade Minister Yeo Han-koo told the Korea Economic Daily in an interview published on Thursday.
He said South Korea will "swiftly advance trade negotiations with Southwest Asian countries, including Bangladesh and Pakistan," as part of a broader strategy to deepen ties with the Global South, says the Korea Economic Daily.
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South Korea and Bangladesh launched talks in August on a Comprehensive Economic Partnership Agreement (CEPA), which would cover investment, services, intellectual property and regulatory issues beyond tariffs.
Bangladesh, the world's eighth most populous country with 170 million people, is the second-largest clothing manufacturing hub globally after China. Its economy has expanded at an average of 6-7% annually in recent years, fuelled by cheap labour and natural resources.
South Korea is the fifth-largest investor in Bangladesh, with more than 100 companies operating there, led by apparel maker Youngone Corp., an original design manufacturer for global outdoor brands such as The North Face and Nike.
Bilateral trade reached just $1.98 billion in 2024, ranking Bangladesh 54th among Seoul's trading partners. Yeo said a CEPA could help boost the figure, citing how South Korea's trade and investment with India surged after a similar pact was signed in 2010.
Diversifying export destinations is critical for Asia's fourth-largest economy, where trade accounts for about 90% of gross domestic product. South Korean exporters have been hit by rising US tariffs and slowing demand from China.
South Korea is also accelerating trade talks with Southeast Asian nations including Thailand and Malaysia. In August, exports to ASEAN countries reached $10.9 billion, surpassing shipments to the US at $8.7 billion and closing in on $11.0 billion to China.
"We'll pursue tailored trade agreements with other Global South countries, including those in the Middle East, Central and South Asia and Africa," Yeo said.
