Bangladesh and South Korea are set to sign an Economic Partnership Agreement (EPA) by the end of 2025, Commerce Secretary Mahbubur Rahman said on Sunday.

Speaking at a seminar on bilateral investment in Dhaka, Rahman confirmed that the first round of negotiations will begin in late July, with six to seven rounds expected before finalisation. The agreement will cover duty rationalisation, investment, trade in services, regional value addition, and broader trade expansion.

Diplomats, government officials, and business leaders attended the seminar, which was hosted jointly by the South Korean embassy and the Foreign Investors’ Chamber of Commerce and Industry (FICCI).

Rahman hinted at potential changes to Bangladesh’s import policy and suggested that the upcoming national budget may include reducing smartphone import duties to curb grey market dominance.

In a keynote, South Korean Ambassador Park Young Sik highlighted Bangladesh’s economic ascent, noting it is currently the 35th largest economy and projected to become the 9th largest in terms of purchasing power by 2030.

Policy Research Institute Chairman Dr Zaidi Sattar underscored Bangladesh’s long-standing protectionist tariff regime, urging rationalisation, while citing Vietnam’s success through extensive free trade agreements.

Samsung’s Bangladesh Country Manager, Jung Min, and KIDO CFO, Jung Ho, raised concerns over grey market activity and customs inefficiencies. KIDO announced plans to expand its workforce in Narayanganj from 4,200 to 10,000.

South Korean firms also flagged political instability and logistical delays as key obstacles to investment in Bangladesh.