Bangladesh is seeking over US$6 billion in loans from South Korea to finance nearly two dozen development projects with an estimated initial outlay of Tk 816.70 billion, as the East Asian nation signals growing interest in backing large-scale infrastructure initiatives.

Officials from the Economic Relations Division (ERD) confirmed that high-level Korean representatives expressed preliminary consent during a recent visit to Dhaka. A four-member delegation from South Korea’s Ministry of Land, Infrastructure and Transport and the Export-Import Bank of Korea (KEXIM) held meetings with the ERD on 22 July to explore financing opportunities.

“South Korea is now leaning more towards supporting megaprojects rather than small-scale initiatives,” said an ERD official, adding that projects like Metro Rail Line-4 and Line-5, rolling-stock procurement, and power transmission development are under active consideration.

Ahead of the talks, ERD had sought proposals from over 30 implementing agencies to present a project pipeline, in a move aimed at reinvigorating development activities following a recent slowdown.

However, political uncertainty in both countries was cited by officials as a potential stumbling block to progress. “Korea too is facing political instability, which, combined with our own situation, is affecting decision-making on both sides,” said an ERD source.

Loan conditions will vary by source. While financing under Korea’s Economic Development Cooperation Fund (EDCF) will carry a concessional interest rate of up to 1%, other loans from KEXIM will be priced commercially.

Feasibility studies for several shortlisted projects are underway using the Korean methodology. Projects nearing completion of these assessments are expected to be finalised soon.

“We have reviewed the pipeline, identified gaps in preparation, and held discussions on necessary approvals. Some projects await clearance on our end,” said a senior official involved in the talks.

South Korea has been a development partner of Bangladesh since 1993, with most previous investments focused on smaller projects. The current engagement marks a shift towards long-term, high-value infrastructure collaboration.