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July 2025 Admin By Abdullah

Korean Machinery in Bangladesh: Trade Growth, Industrial Adoption, and Technical Insights

Korean Machinery in Bangladesh: Trade Growth, Industrial Adoption, and Technical

Insights

Bangladesh’s industrial development has increasingly intertwined with South Korean machinery and technology. From heavy manufacturing equipment to hi-tech assembly lines, Korean machinery is making its mark across Bangladesh’s key sectors. This article provides a comprehensive overview – including up-to-date trade figures, sector-specific applications, company examples, and technical comparisons. We also suggest visual elements like charts and tables to enhance understanding.

Trade Overview: Bangladesh–Korea Machinery Trade

Rising Trade Volumes: Bilateral trade between Bangladesh and South Korea reached a historic high of $3.035 billion in 2022, a 38.7% jump from 2021[1] . Within this, machinery is a major component of South Korea’s exports to Bangladesh[2] . In fact, machinery imports from Korea more than doubled in 2021 to about $297 million (up 107%), reflecting Bangladesh’s expanding manufacturing capacity[2] . (Figure: A bar chart could illustrate this surge in machinery imports from Korea, e.g. rising from ~$144m to $297m in 2021.)

Recent Slowdown: However, 2022 saw a slight dip in machinery imports from Korea. Bangladesh imposed import restrictions amid foreign reserve pressures, which meant that non-essential imports like machinery were curtailed[3] . Korean diesel exports dominated that year (after a 703% rise), while categories like machinery, petrochemicals, steel, and others actually decreased in 2022[4] . Despite this, overall trade still rose due to the spike in fuel imports.

Comparison with Other Partners: To put Korea’s role in perspective, China remains the dominant source of machinery for Bangladesh – in 2023 China supplied over $4.17 billion worth of machinery to Bangladesh[5] . By contrast, South Korea’s machinery exports (in the few-hundred-million range) form a smaller but significant share. Korea typically supplies more specialized or high-tech equipment (for example in electronics and automotive manufacturing[6] ), whereas China covers a broad range of cost-effective machinery for textiles, agriculture, etc. (Figure: A pie chart could show China as ~60%+ of Bangladesh’s machinery imports, with Japan, Germany, India, and South Korea making up most of the remainder[6] . South Korea’s slice might be modest, but growing.)

Policy Environment: Bangladesh encourages industrial upgrades by allowing duty-free import of capital machinery for export-oriented industries and in Special Economic Zones (EPZ). This policy has benefited the inflow of quality machinery from countries like South Korea. As Bangladesh approaches middle-income status and negotiates an Economic Partnership Agreement (EPA) with Korea[7] , trade in machinery (along with technology transfer) is expected to further expand. Both governments see machinery and tech cooperation as key to future partnership in the post-2026 era (when Bangladesh graduates from LDC status)[8] .

Sector-Specific Applications of Korean Machinery in Bangladesh

South Korean machinery is finding applications in a wide array of Bangladeshi industries. Below we break down major sectors and examples of how Korean equipment or expertise is being utilized:

Ready-Made Garments (RMG) and Textiles

Bangladesh’s garments and textile industry – the country’s economic backbone – owes some of its origins to Korean partnership. A landmark 1979 collaboration between Bangladeshi firm Desh Garments and Daewoo Corporation of South Korea is often credited with kick-starting the RMG sector by transferring technical know-how and machinery expertise[9] . Korean companies trained Bangladeshi managers and introduced modern garment factory machinery at a time when local capability was low. This helped “plant the seed” of what would become Bangladesh’s largest export industry[9] .

Today, Korean textile machinery and technology continue to play a role, albeit more behind the scenes. Many Korean-invested companies operate in Bangladesh’s garment sector – for instance, the Korea Export Processing Zone (KEPZ) in Chattogram is run by Youngone Corporation (a Korean firm) and houses textile and apparel factories. These factories often utilize Korean sewing, knitting, and dyeing machines, or at least Korean maintenance standards, to achieve higher efficiency and product quality.

Moreover, auxiliary textile industries are benefiting from Korean machinery. A notable example is DS Korea (BD) Ltd, a Bangladesh-based subsidiary of Korea’s Daesung Group that manufactures textile dyeing and printing chemicals. Its Chattogram factory runs entirely on brand-new Korean-made machinery and is managed by experienced Korean engineers[10] . By using 100% Korean equipment, the company ensures “Korean standard” quality in its chemical products for local textile mills[11] .

Electronics and Home Appliances- Perhaps the most high-profile success of Korean machinery in Bangladesh is in consumer electronics manufacturing. In the last decade, Bangladesh has started locally producing everything from smartphones to refrigerators, thanks to partnerships with Korean giants:

• Samsung Electronics Assembly: In 2018, Fair Electronics (a local firm under Fair Group) set up a state-of-the-art factory in Narsingdi to assemble Samsung products. With extensive technical support from Samsung Korea, Fair Electronics’ engineers now manufacture Samsung Galaxy smartphones (including flagship models like the Z Fold 3 5G) for the local market[12] . Korean automated assembly lines and quality control systems were installed, and Samsung’s own engineers were on-site to train Bangladeshi staff. According to Fair’s Chief Marketing Officer, the Korean partnership was crucial in building this hi-tech plant, and Bangladeshi youth are “getting skilled by working with the Korean engineers at the production lines”[13] . This factory supplies nearly 100% of Samsung phones in Bangladesh, as well as ~90% of Samsung-brand refrigerators, TVs, ACs, and washing machines sold locally[14] – an astounding localization enabled by Korean machinery and know-how.
• LG and Other Electronics: Following Samsung’s lead, other Korean brands have moved production to Bangladesh or supplied machinery. LG Electronics has partnered with local firms (e.g. LG Butterfly) to assemble TVs and appliances, likely using imported Korean manufacturing equipment. Additionally, Walton, Bangladesh’s own electronics giant, has sourced various machinery and components from Korea (for example, precision molds or compressor technology) to improve its product lines. The presence of Korean automation robots, SMT machines (for circuit boards), and testing equipment in Bangladesh’s electronics plants has elevated the sector’s capabilities.

Visual idea: A photo (or illustration) of a Bangladeshi worker on a smartphone assembly line with Korean supervisors would illustrate this tech transfer. A chart could also show the increase in locally assembled electronics after 2018, correlating with Samsung’s factory opening (from near zero to dominating certain product segments).

Automobiles and Transport Machinery- Automotive manufacturing in Bangladesh has been nascent, but that is changing with help from Korea. In 2023, Hyundai Motors opened the first-ever car assembly plant in Bangladesh (at the Bangabandhu Hi-Tech Park in Kaliakoir) in partnership with local distributor Fair Technology[15]. This facility is assembling Hyundai passenger vehicles from Complete Knock-Down (CKD) kits. Crucially, the factory was established with Korean machinery, robotics, and process expertise to meet Hyundai’s global standards.

Speakers at the inauguration hailed it as a “game changer” for the industry[16] [17] . The South Korean Ambassador noted that Fair bringing in Hyundai will contribute to technology transfer and industrial development of automobiles in Bangladesh[17] . Bangladeshi workers are being trained on Korean assembly line equipment for tasks like welding, painting, and quality inspection of vehicles. As a result, brand-new Hyundai models (like the Creta SUV) are now “Made in Bangladesh” with a significant portion of the value addition happening locally.

Beyond cars, Korean heavy vehicles and material-handling machinery are also present. Hyundai’s commercial vehicles (buses, trucks) and Doosan Infracore’s construction equipment have local dealerships and service centers. For example, Bangladeshi company Maxon Power Ltd represents Hyundai–Doosan’s “Develon” brand of construction equipment in Bangladesh, providing Korean excavators, wheel loaders, etc., to infrastructure projects[18] . These Korean machines – known for durability and advanced hydraulics – are used in major builds like Padma Bridge approaches and metro rail construction, complementing Japanese or Chinese equipment on site.

Agriculture and Food Processing-Agriculture employs the majority of Bangladesh’s workforce, and mechanizing this sector is vital. Here, South Korean farm machinery has found a niche, especially in harvesting and processing equipment:

• Combine Harvesters: In the 2010s, local firms like ACI Motors and The Metal (Pvt.) Ltd began importing Korean-made combines to help farmers efficiently harvest rice and wheat. The Metal, one of Bangladesh’s largest agro-machinery companies, sources some rice transplanters and combine harvesters from South Korea (as well as China)[19] . These Korean combines (e.g. by Daedong/Kioti or Tongyang Moolsan) are prized for being suitably compact for Bangladesh’s small fields yet reliable. Over the last five years, The Metal sold dozens of Korean combines under government subsidy programs[20] , boosting crop yields and reducing labor needs.
• Tractors and Equipment: While most tractors in Bangladesh come from India or China, Korea’s LS Mtron and Daedong have supplied a number of small tractors and power tillers via distributors. Additionally, Korean irrigation pumps and greenhouse technologies have been demonstrated in Bangladeshi agriculture, often through KOICA (Korea’s aid agency) pilot projects.
• Food Processing: As Bangladesh’s food industry modernizes, Korean packaging and processing machines are being adopted. For instance, certain dairy and beverage factories have installed Korean automated filling lines and sterilizers. The precision of these machines helps meet sanitary standards for exportable food products. Another example: a large Bangladeshi bakery commissioned a Korean robotic baking line to increase production of packaged cakes (hypothetical scenario illustrating the trend).

Medical and Pharmaceuticals- In high-precision sectors like medical devices and pharma, Korean machinery’s reputation for quality gives it an edge. A standout case is Gumti Needle Lab, a cutting-edge medical equipment factory in Gazipur. This facility produces safety lock syringes and blood collection tubes, and all 300 machines in the factory are fully automated units imported from South Korea[21] . The result is a level of precision and sterility that meets international healthcare standards – something that cheaper machines might struggle with. According to the founder, these Korean machines can produce “millions” of needles per day, enabling cost-effective mass production of critical medical supplies[22]. By choosing Korean automation, Gumti ensured product quality (e.g. exact needle tip sharpness, hygienic packaging) that helps them compete with imported medical goods.

Bangladesh’s burgeoning pharmaceutical industry (which supplies 98% of the domestic medicine demand) also relies on sophisticated imported machinery. While much of the pharma equipment comes from Europe, South Korean machines – such as tablet pressers, capsule filling machines, and packaging lines – are in use at several pharma plants for their blend of reliability and relatively lower cost. For example, a leading pharma company installed a Korean blister packaging machine to improve its output of antibiotic tablets (hypothetical illustration). The accuracy and uptime of the Korean machine improved their efficiency versus an older Indian unit it replaced.

In hospitals too, Korean medical tech has a presence: from diagnostic equipment (e.g. Samsung Medison ultrasound machines are used in clinics) to hospital infrastructure (some advanced hospital beds and sterilizers are Korean-made).

Other Industries and Future Prospects- Beyond the sectors above, Korean machinery is making inroads or has potential in areas like:

• Infrastructure & Construction: South Korean contractors and funds are involved in infrastructure projects, often bringing equipment. For instance, on a recent Intelligent Traffic System installation on a highway Korean contractors deployed Korean-made monitoring equipment and cameras[23] . Likewise, Korean-made heavy cranes and tunnel borers could be used in upcoming megaprojects (if Korean firms win those contracts).
• Heavy Industry & Engineering: In 2017, Bashundhara Group (one of Bangladesh’s largest conglomerates) signed a joint venture MoU with Korea’s MTS Co. Ltd. to establish a factory for industrial valve manufacturing[24] . The project’s goal is to produce high-quality gate valves, ball valves, etc., domestically, using Korean machinery and expertise. This reflects a broader trend: as Bangladesh ventures into heavy engineering (from shipbuilding to power equipment), Korean firms are seen as partners to deliver advanced machinery. The shipbuilding sector is another example – Korean designs and machinery (like welding robots from Hyundai Heavy Industries) have been consulted to upgrade Bangladeshi shipyards.
• Light Manufacturing:Footwear and plastics are identified as new collaboration areas[25] . A few Bangladeshi shoe factories have imported Korean computerised sewing machines and laser cutters to improve precision in leather cutting. Plastic packaging companies are using Korean injection molding machines for better consistency in products like bottles and caps.
• ICT and Renewable Energy: Bangladesh’s drive for a “Smart Bangladesh” includes setting up manufacturing for ICT equipment (like laptops, solar panels, etc.). Here, Korean machinery can play a role – for instance, automated PCB assembly lines from Korea for local tech device manufacturing, or Korean solar panel production equipment if Bangladesh starts local panel assembly.

Overall, the range of industries tapping Korean machinery is expanding. This diversification is encouraged by South Korea’s approach of continuous investment across sectors (garments, then electronics, now autos, etc.) and introducing technology needed for Bangladesh’s sustainable growth[26] [25] .

Specific Companies in Bangladesh Using Korean Machinery

To ground the discussion, here is a snapshot of Bangladeshi companies (or joint ventures) and how they are leveraging Korean machinery or technology in their operations:

The above list is not exhaustive – numerous other firms, especially in garments (e.g., Youngone’s KEPZ factories), leather goods, and electronics, are deploying Korean equipment or collaborating with Korean technical teams.)

Technical Comparisons: Korean Machinery vs Others

Bangladeshi companies often face a choice between machinery from various origins – chiefly Chinese, Indian, Western (European/North American), Japanese, and Korean. Each comes with trade-offs in cost, technology, and reliability. Here’s how Korean machinery generally stacks up:

• Quality and Reliability: Korean machinery is widely regarded as high-quality and durable, approaching Japanese or German standards, but often at a slightly lower price point. This makes it attractive to Bangladeshi firms who need dependable performance but cannot always afford top-tier Western/Japanese equipment. For instance, a Korean CNC machine or medical apparatus might run reliably for years with minimal downtime, whereas cheaper alternatives might break down more often. Companies like DS Korea (BD) explicitly state that with fully Korean machines their product remains “Korean standard and one of the best in the world”[28] , reflecting the confidence in Korean engineering.
• Technology & Innovation: South Korea is a global leader in certain advanced manufacturing technologies (robots, semiconductors, automotive engineering). When Bangladeshi factories partner with Korean firms, they gain access to cutting-edge tech. A clear example is Samsung’s smartphone assembly: Bangladesh got to locally produce Galaxy smartphones only by using Samsung’s latest automated equipment and assembly techniques. Similarly, Hyundai’s introduction brought in modern automotive tooling (like jigs and fixtures for precise car assembly) that was previously absent in Bangladesh. Korean machinery often incorporates modern automation (PLC controls, IoT monitoring, etc.), aligning well with Bangladesh’s push for Industry 4.0 readiness.
• Cost Efficiency: In terms of upfront cost, Korean machines are generally more expensive than Chinese or Indian counterparts, but cheaper than European/Japanese ones. This middle-ground pricing, combined with good quality, gives a solid value-for-money proposition. For critical applications – say, a pharmaceutical packaging line where a failure could halt production – many Bangladeshi firms prefer paying a bit more for Korean or Japanese equipment rather than risking downtime with a very cheap machine. Over the life cycle, the Korean machines often prove cost-effective due to lower maintenance needs and energy efficiency. For instance, a Korean combine harvester might cost more than a Chinese model, but farmers report it to “perform well” with five functions in one pass and deliver higher yield”[29] [30] , implying better productivity per taka spent.
• After-Sales Support: An important factor is service and parts. Korean manufacturers usually ensure local support through authorized agents (e.g., the Doosan/Develon construction equipment distributor provides spare parts and trained mechanics in Bangladesh). This contrasts with some low-cost Chinese suppliers where getting parts can be harder. The training component is also notable: Korean companies often invest in training local technicians (Samsung sending Bangladeshi engineers to Korea for 45 days[31] , or Hyundai bringing Korean experts to Dhaka) to ensure their machinery is used correctly. This knowledge transfer is a distinct advantage of choosing Korean partners, as it builds local human capital along with the hardware.
• Adaptation to Local Needs: Over years of engagement, Korean firms have shown flexibility in adapting machinery to Bangladesh’s context – be it tropical climate, power supply variability, or smaller-scale operations. For example, Korea’s smaller combine harvesters were suitable for Bangladesh’s small farm plots, unlike some giant Western harvesters meant for huge fields. Likewise, Samsung’s appliance assembly in Bangladesh has been tailored to use some locally sourced inputs (like packaging) while critical components are handled by precise Korean machines – a hybrid approach that fits local supply chains. This adaptive approach makes Korean machinery pragmatic for Bangladeshi conditions.

In summary, Korean machinery hits a sweet spot: providing advanced, reliable technology without the exorbitant costs of some high-end brands. It enables Bangladeshi industries to upgrade quality and capacity, which is vital as the country aims to diversify exports and improve productivity. The technical collaboration (through joint ventures, training, etc.) further amplifies the benefits, distinguishing Korean involvement from a mere buy-and-sell relationship.

Outlook for Korean Machinery in Bangladesh

The influence of Korean machinery in Bangladesh has evolved from a few pioneering partnerships (in garments) to a broad-based engagement across many modern industries. As of 2025, South Korea is a key partner in Bangladesh’s quest for industrial upgrading, whether it’s assembling the latest electronics and cars domestically or improving agricultural output with better equipment. The trend is mutually beneficial: Bangladesh gets quality machines and tech know-how, while Korea opens a growing market for its machinery exports and often benefits from Bangladesh’s competitive production base (through FDI).

Looking ahead, both governments and businesses are keen to deepen this partnership. The South Korean Ambassador aptly stated that Bangladesh–Korea cooperation has moved “from RMG to electronics, infrastructure, and now automobiles”, and new frontier areas are opening up[32] . In the near future, we can expect:

·         Higher trade volumes in machinery:as Bangladesh’s economy (and need for machinery) grows ~7% annually, and if an EPA trade deal is signed, imports of Korean capital machinery could surge beyond the current few hundred million dollars a year.

·         New sectors for collaboration: like renewable energy technology (Korea’s green tech machinery for solar farms or smart grids), shipbuilding (transferring Korean shipyard machinery to build coastal vessels in Bangladesh), and digital tech (manufacturing of ICT devices with Korean equipment).

·         Local manufacturing under Korean license:More Korean companies may choose to set up manufacturing in Bangladesh (as Samsung and Hyundai did) to serve both the local market and export markets. This will bring in more Korean machine tools, assembly lines, and auxiliary machinery to Bangladeshi factories.

·         Continued skill development: Each infusion of Korean machinery comes with training. Over time, a cadre of Bangladeshi engineers and technicians expert in Korean systems will emerge, which in turn could support regional expansion (e.g., Bangladeshi tech experts might help set up Korean machines in other South Asian countries).

In conclusion, Korean machinery has carved out a strong reputation in Bangladesh for quality and technological edge. Whether it’s the silent whir of a Korean servo motor on a Dhaka factory floor, or the gleam of a freshly assembled Hyundai car on Bangladeshi roads, these are testaments to a partnership that marries machinery with development. With careful investment and cooperation, the “Made in Bangladesh” tag will increasingly have a “Powered by Korea” story behind it – a story of two nations advancing together through industrial innovation.

Sources

 The information above is drawn from recent trade reports, industry news, and official statements. Key sources include bilateral trade statistics[1] [2] , Bangladeshi news outlets like The Business Standard, Dhaka Tribune, etc., highlighting specific projects and company activities (e.g. Samsung/Fair Electronics[12] [13] , Hyundai/Fair Technology[27] , Gumti Needle Lab[21] ), and publications on sector trends[6] . These demonstrate the tangible impact of Korean machinery in Bangladesh’s economy and its promising trajectory for the future.

[1] [3][4] Bangladesh, S Korea bilateral trade reach record high crossing $3 billion in 2022 | Business | FT | The National Financial Portal https://www.thefinancetoday.net/article/business/20923/Bangladesh-S-Korea-bilateral-trade-reach-record-high-crossing-%243-billion-in-2022  

[2] Export to South Korea doubles in a decade | The Business Standard

https://www.tbsnews.net/economy/export-south-korea-doubles-decade-351100

[5] Machinery Import From China To Bangladesh

https://www.dhl.com/discover/en-bd/e-commerce-advice/shipping-guides-by-country/how-to-import-machinery-from-china

[6] Bangladesh’s Main Import: Essential Insights into Machinery

https://www.connecta-network.com/bangladeshs-main-import-essential-insights-into-machinery/

[7] [8][9] [15][25] [26][27] FICCI | KOREA-BANGLADESH PARTNERSHIP THRIVES: KEPZ MARKS 50 YEARS OF DIPLOMATIC TIES WITH $1.25 BILLION IN EXPORTS AND 70,000 JOBS

https://ficci.org.bd/en/blog/korea-bangladesh-partnership-thrives-kepz-marks-50-years-of-diplomatic-ties-with-125-billion

[10] [11][28] About DS KOREA (BD) LIMITED

https://dskoreabd.com/about/

[12] [13][14] [31] How Samsung puts Fair Electronics on hi-tech trajectory  | The Business Standard

https://www.tbsnews.net/economy/industry/how-samsung-puts-fair-electronics-hi-tech-trajectory-364024

[16] [17][32] Hyundai cars made in Bangladesh: First manufacturing plant in Gazipur opens

https://www.dhakatribune.com/bangladesh/303126/hyundai-cars-made-in-bangladesh-first

[18] Construction & Material Handling Equipment - Maxon Power Limited

https://maxonpowerltd.com/construction-equipment.php

[19] [20][29] [30] LWR-2018-111-final-report-appendix-1-FGD-survey-report

https://www.aciar.gov.au/sites/default/files/2021-12/LWR-2018-111-final-report-Appendix-1.pdf

[21] [22] Need in Needle

https://www.dhakatribune.com/magazine/weekend-tribune/128523/need-in-needle

[23] 4 times higher cost proposed for traffic monitoring on Dhaka-Mawa highway | The Business Standard

https://www.tbsnews.net/bangladesh/infrastructure/4-times-higher-cost-proposed-traffic-monitoring-dhaka-mawa-highway-410326

[24] Bashundhara Group, Korean MTS company reach agreement - Bashundhara Group

https://www.bashundharagroup.com/article/bashundhara-group-korean-mts