Bangladesh and South Korea on Tuesday signed a bilateral Comprehensive Economic Partnership Agreement (CEPA), under which 97 per cent of Bangladeshi products exported to the Korean market will receive preferential tariff treatment.

In return, Bangladesh will extend preferential market access to 87 per cent of South Korean products, including selected agricultural goods, plastics and Completely Knocked Down (CKD) items.

Commerce minister Khandakar Abdul Muktadir disclosed the details at a joint press conference at the secretariat following the signing ceremony. South Korean trade minister Yeo Han-koo was also present.

Muktadir said that the agreement would create new opportunities for employment generation, accelerate economic growth and strengthen Bangladesh’s post-LDC trade transition.

He said Bangladeshi export products, including readymade garments, leather goods and jute products, would gain easier access to the South Korean market, helping diversify exports and enhance the country’s global competitiveness.

“The preferential market access secured for Bangladeshi exports in South Korea is a major milestone for the country,” he said, adding that the agreement would play an important role in expanding bilateral trade.

The commerce minister also said the CEPA would help attract greater foreign direct investment, particularly from South Korea.

Responding to questions about the pace of negotiations, Muktadir said the process had been efficient rather than rushed.

He said that while similar trade agreements often take between 10 and 20 years to conclude, Bangladesh completed the negotiations within six months through continuous efforts.

The minister said the interests of local industries had been carefully safeguarded during the negotiations and that the CEPA would be made public for detailed review.

“It is a transparent agreement whose long-term benefits will be evident to all stakeholders,” he added.

Referring to the government’s economic target, Muktadir said Bangladesh aims to become a $1 trillion economy by 2034, which would require an annual nominal GDP growth rate of about 8 per cent.

“As domestic resources alone will not be sufficient to achieve this target, attracting quality foreign investment is essential,” he said, describing South Korea as a model economy with strong technological capabilities and a GDP of about $2 trillion.

He said the agreement would encourage Korean investment in high-value sectors, including semiconductors, information technology, shipbuilding, ship recycling and light engineering.

South Korean trade minister Yeo Han-koo said bilateral economic relations had traditionally centred on the textile sector but were now expanding into broader industrial cooperation and investment.

He said Bangladesh’s large young workforce made it an attractive production base for Korean companies.

“Korean firms could establish manufacturing facilities in Bangladesh to serve both the Korean market and global export destinations,” he added.