Korea KOTRA Expands Role in Bangladesh New Town Development with $3.5M ODA Feasibility Push

Dhaka, August 12, 2026 — The Korea Trade-Investment Promotion Agency (KOTRA) is significantly expanding its footprint in Bangladesh, moving beyond traditional trade and investment promotion into infrastructure feasibility, smart-city solutions, and new town development. The push is anchored by a $3.5 million Official Development Assistance (ODA) project launched in March 2026 to conduct feasibility studies for six infrastructure projects supporting new town development in Bangladesh over the next three years.

📢 KOTRA's Evolving Mandate in Bangladesh

In an interview with the state news agency BSS, KOTRA Dhaka Deputy Director Lee Sung-hoon (Daniel Lee) outlined a strategic repositioning that reflects Bangladesh's emergence as a priority market for Korean infrastructure, technology, and capital. “We act as a business developer between Korea and Bangladesh,” he said, explaining that KOTRA's activities now span identifying buyers, arranging business meetings, supporting bids for infrastructure and ICT projects, and advising Korean companies seeking to establish operations in the country.

KOTRA also operates a branch-office service that manages the Bangladeshi market on behalf of Korean small and medium-sized enterprises that do not yet have a physical presence — effectively lowering the barrier to entry for Korean firms eyeing the world's second-largest garment exporter and one of Asia's fastest-growing consumer markets.

📊 The $3.5 Million ODA Project: Six Feasibility Studies

The ODA project, launched in March 2026, will fund feasibility studies across six critical infrastructure verticals supporting Bangladesh's ambitious new town development agenda:

• 💧 Water supply — sustainable urban water systems for new residential zones
• ⚡ Renewable energy — solar, wind, and waste-to-energy integration
• 🚢 Ports and transport — logistics connectivity for new urban corridors
• 🖥️ Smart city solutions — digital infrastructure, IoT, urban management
• 💻 AI and ICT — digital government and intelligent transport systems
• 🏭 Industrial modernisation — upgrading manufacturing zones with Korean expertise

The studies will be delivered over three years and are designed to create a robust pipeline of bankable projects that Korean contractors, financiers, and technology providers can pursue. The initiative effectively positions KOTRA as a deal-originator — not just a promoter — in one of South Asia's most attractive infrastructure markets.

🤝 June 2026 Roadshow: 40 Korean Companies, 22 Bangladeshi Agencies

The ODA push builds on a major infrastructure and AI roadshow that KOTRA Dhaka and the Embassy of the Republic of Korea jointly organised in June 2026. The event brought together around 40 Korean companies with 22 Bangladeshi government agencies and public organisations — a scale of engagement that underscores the depth of Korean interest in Bangladesh's infrastructure modernisation.

The roadshow covered transport, power, water, smart cities, digital government, industrial modernisation, and regulatory compliance in the garment sector. According to Lee, such programmes are aimed at matching Bangladesh's development needs with Korean technology, expertise, and investment capacity — a tailored matchmaking model that goes beyond generic trade missions.

🏭 KEPZ: The Symbol of Korean-Bangladeshi Trust

Lee highlighted the Korean Export Processing Zone (KEPZ) in Chattogram as a powerful symbol of the longstanding economic relationship between the two countries. Covering roughly 992 hectares, KEPZ is a permanent duty-free industrial zone — and Korea is the only country in Bangladesh with a dedicated industrial zone bearing its name.

The zone traces its origins to the pioneering investment by Youngone Corporation, whose Chairman & CEO Kihak Sung was among the first Korean entrepreneurs to see Bangladesh's potential as a garment production hub. Lee described the transfer of knowledge from Korean investors to the local industry as “the single most important legacy” Korea and KOTRA have left in Bangladesh — laying the foundation for the country's emergence as the world's second-largest garment-exporting nation.

🌐 Beyond Garments: Diversifying the Korean Footprint

While garments remain the backbone of Korean-Bangladeshi commercial ties, KOTRA Dhaka's current mandate spans a much wider canvas. The agency now actively supports Korean companies across consumer goods, public procurement, roads, transport, railways, ports, AI, ICT, green and carbon-reduction projects, and ODA-related development initiatives.

KOTRA's services for Korean firms include:

• 🔍 Identifying business opportunities inBangladesh
• 📞 Facilitating contacts with Bangladeshi buyers and public agencies
• 👥 Organising business meetings and Korean pavilions at local exhibitions
• 📋 Providing market-entry support and regulatory navigation
• 💼 Operating a branch-office service for Korean SMEs
• 📈 Supporting bids for infrastructure and ICT projects

Lee cited K-Goods Festa 2026, held at Jamuna Future Park in June, as another flagship initiative — bringing Korean consumer brands directly to Bangladeshi retail audiences and building brand recognition for Korean products among the country's rapidly expanding middle class.

📊 Strategic Context: Why Bangladesh, Why Now?

KOTRA's expanded Bangladesh push arrives at a strategically opportune moment. Bangladesh is undergoing one of the most ambitious urban transitions in the developing world — with the government planning multiple new town developments to relieve pressure on Dhaka and Chattogram. The country also needs an estimated $25 billion in infrastructure investment annually through 2030 to sustain its growth trajectory.

For Korea, Bangladesh represents a high-growth market that is geopolitically aligned, demographically young, and increasingly open to foreign infrastructure expertise. Korean firms bring world-class capabilities in smart cities, urban transport, water management, and digital government — areas where Bangladesh urgently needs both capital and know-how.

The timing is also significant in light of Bangladesh-Korea CEPA (Comprehensive Economic Partnership Agreement), which entered into force recently and provides preferential market access for 97 percent of Bangladeshi goods. As trade barriers fall, Korean investment in Bangladesh's infrastructure and manufacturing sectors is expected to accelerate — with KOTRA positioned as the critical intermediary.

🌏 What This Means for Bangladesh's Export Economy

For Bangladeshi exporters, the deepening Korean engagement carries multiple strategic benefits:

• 🏢 Industrial modernisation — Korean expertise can upgrade factories and logistics infrastructure
• 💧 Water and energy infrastructure — critical for sustaining industrial expansion
• 🚢 Port modernisation — reduces export lead times and landed costs
• 🌐 Korea as export market — CEPA opens new opportunities for Bangladeshi goods
• 🧬 Technology transfer — smart city know-how supports broader digital transformation

For a country preparing for LDC graduation in November 2026 and urgently diversifying its export base, the deepening partnership with Korea — anchored by KOTRA's $3.5 million ODA push — represents one of the more quietly significant commercial developments of the year. If executed well, it could accelerate Bangladesh's transformation into a more diversified, infrastructure-resilient, and globally integrated economy.