With Bangladesh set to graduate from least developed country (LDC) status at the end of 2026, swift action on an Economic Partnership Agreement (EPA) with South Korea is crucial, the ambassador of South Korea to Bangladesh Park Young-sik said yesterday.

"Bangladesh does not have much time because LDC graduation will be effective on November 24, 2026. Therefore, if negotiations on an EPA are started, both sides should make all efforts to shorten the period of the talks," he said.

"I have had many opportunities to witness long and tedious negotiations on the texts of Free Trade Agreements (FTAs). If both countries can refer to the texts of other FTAs, they can save time and focus on important issues such as trade liberalisation."

He was speaking at a seminar, titled "Korea-Bangladesh Economic Cooperation", organised by the Foreign Investors' Chamber of Commerce and Industry (FICCI) in collaboration with the South Korean embassy at The Westin Dhaka.

EPAs and FTAs are crucial for countries graduating from LDC status as they allow them to secure market access, maintain competitive trade advantages and attract foreign investment, thereby fostering sustainable economic growth.

"I would like to point out that if it is agreed to start bilateral EPA negotiations, Korea will not view Bangladesh as an LDC, but as a developing country. This means Bangladesh will have to pay attention to the issues that Korea will raise during negotiations."

Park added that Bangladesh planned to submit an official document to join the Regional Comprehensive Economic Partnership (RCEP), an FTA between China, Japan, South Korea, Australia, New Zealand and 10 ASEAN member states.

"If Bangladesh's entry is confirmed, it will start bilateral consultations with each of the 15 member countries and decide whether it will accept the requests."

The ambassador also said: "Korean companies have been long-standing partners of Bangladesh, contributing significantly to the growth and success of the RMG industry. In recent years, we have witnessed remarkable developments in diversifying areas of cooperation beyond RMG, particularly in manufacturing and infrastructure."

"However, the post-LDC graduation phase will require considerable efforts from both the government and private sector to overcome a lot of challenges that Bangladesh will face in coming years," he added.

Park also gave some sage advice for the impending achievement, saying: "Graduation from LDC status means that Bangladesh should focus not just on the quantity, but the quality of its economic growth."

FICCI President Zaved Akhtar emphasised that a collaborative approach is crucial to driving innovation and development, which will unlock new investment opportunities.

"This is the right time to not only bring back confidence after bit of a challenge in the past few months, but also investment."

Adilur Rahman Khan, adviser to the Ministry of Industries as well as the Ministry of Housing and Public Works, said the government is working hard to create an investment-friendly environment.

Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority, said any foreign company intending to invest in Bangladesh would be treated fairly.

"Of course, there are challenges, and every country comes as a package. We are also a package and have our own set of challenges that we are trying to tackle," he said, adding that the government would not interfere with businesses but instead focus on removing obstacles.

Samsoo Kim, director general of the Korea Trade-Investment Promotion Agency, emphasised the importance of enhancing trade and investment ties between the two nations in the keynote speech.

The seminar was moderated by TIM Nurul Kabir, executive director of FICCI.