South Korea eyes investment in AI, energy and infrastructure

South Korea wants to take its economic relations with Bangladesh to a new level, shifting beyond traditional development assistance and concessional loans to expand direct investment and partnerships in artificial intelligence (AI), digital infrastructure, renewable energy and advanced manufacturing.

The two countries have also discussed attracting Korean institutional investment in commercially viable infrastructure and other projects in Bangladesh, including a proposed $1 billion to $2 billion sovereign fund.

The issues were discussed during a visit to Seoul by a Bangladesh delegation led by Finance and Planning Minister Amir Khosru Mahmud Chowdhury.

On November 3, the delegation held meetings with South Korean government officials and representatives of organisations and technology companies, including Korea Eximbank (KEXIM), Korea Investment Corporation (KIC), LG AI Research, FuriosaAI and Samsung C&T.

The Finance Ministry disclosed the details on Wednesday.

During the meetings, Bangladesh highlighted opportunities for South Korean investment, technology transfer and industrial partnerships to support its next phase of economic transformation.

In talks with KIC, the two sides discussed investment opportunities in infrastructure, renewable energy and digital infrastructure, as well as a proposed $1 billion to $2 billion Bangladesh Sovereign Fund. They also explored combining KIC's equity investments with Korea Eximbank financing and involving Korean fund managers.

AI cooperation was another key focus. Discussions with LG AI Research covered developing large language models tailored to Bangladesh's language and cultural context and expanding AI applications in education, healthcare, manufacturing and public services.

Bangladesh also expressed its ambition to become a regional AI and data centre hub. Talks with FuriosaAI focused on cooperation in high-value AI technologies, while Korea Eximbank expressed interest in supporting infrastructure projects incorporating AI.

At a meeting with Korea Eximbank Chairman and CEO Hwang Kiyun, the delegation reviewed the $3 billion Economic Development Cooperation Fund (EDCF) framework agreement for 2023-2027.

The discussions covered Dhaka MRT Line-5 South, the Matlab Uttar-Gajaria Bridge and the procurement of 260 broad-gauge passenger coaches. Bangladesh sought a clear roadmap for utilising the remaining EDCF allocation and proposed financing for AI, digital transformation, smart infrastructure and supply chain development.

Samsung C&T expressed interest in long-term investment in Bangladesh beyond its traditional role as an engineering, procurement and construction contractor. Potential areas included infrastructure, renewable energy, urban development, tourism and public-private partnership projects, particularly rooftop and large-scale solar power.

In a meeting with South Korea's Second Vice Minister of Economy and Finance, Chang Ho, Amir Khosru called for elevating bilateral ties to a broader strategic level, highlighting cooperation in trade, investment, advanced manufacturing, energy, shipbuilding and digital technology.