Exports from Bangladesh to South Korea nearly tripled over the past five years thanks to duty-free benefits and a push by exporters to explore the world's 13th largest economy and thereby diversify their export destinations.

Annual exports to Korea had hovered between $200 million and $300 million in the five years up till fiscal year (FY) 2016-17. Exports started rising the following year, crossing the half-a-billion-dollar mark to reach a decade-high in FY22.

Then, in FY23, exports to the East Asian nation soared 18 percent year-on-year to $624 million.

The uptick in shipments continued in the first half of the current fiscal year, growing 7 percent year-on-year to more than $330 million, according to the Export Promotion Bureau (EPB).

The spike in exports to South Korea comes at a time when most shipments from Bangladesh remain concentrated on certain markets, namely Europe and North America.

Nine western markets, including the US, UK and Germany, account for nearly two-thirds of Bangladesh's apparel exports, which comprise around 85 percent of the country's annual export receipts.

Exports to markets termed as non-traditional have grown in recent years, reducing the share of exports to traditional markets, as per data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Since January, South Korea has been providing duty-free and quota-free entry to most products from Bangladesh, which acted as a major driver for increasing exports.

"We have been talking about cutting dependence on traditional markets and are working aggressively for this," said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

"So, it [the rise in exports to South Korea] is a reflection of that," he added.

Besides, the government's policy support in the form of a 4 percent cash incentive on exports to new markets encouraged manufacturers until December 31 last year.

However, the rate was reduced to 3 percent from January 1 this year.

Hatem informed that exports to Japan were growing as well.

Buyers from Japan and Korea are cutting their dependence on China as the country is gradually shifting away from garments due to rising wages in the industry, he said.

"Also, Bangladesh is getting preference from Korean buyers as a near shore country," Hatem added.

EPB data showed that apparel items accounted for 86 percent of total exports to South Korea recorded in FY23.

T-shirts, polos, and jackets are among the main items going to the East Asian country, according to Hatem, who also shipped knitwear to South Korea.

"We are working to boost exports to non-traditional markets. We have already been able to create a good position in the South Korean market," said BGMEA President Faruque Hassan.

"We have explored the market and assessed its demand. Besides, we are able to comply with the quality requirements of this market," he added.

Hassan also said he expects exports to South Korea to grow further in 2024.

Fazlul Hoque, managing director of Plummy Fashions Ltd, a knitwear exporter, said South Korea is a big market with significant potential.

"It [exports to Korea] can grow and we have to nurture the market," he added.

Mehdi Mahbub, an analyst on business development in South Korea, said exports to the East Asian nation were supposed to grow much earlier.

"We have not explored the market's potential," he said, adding that South Korean buyers preferred purchasing from Vietnam for various reasons.

"But now, Vietnam is becoming costly," Mahbub added.

He also said that other than woven and knitwear items, South Korea could be a good market for sportswear and outerwear.

"It is possible to increase our exports to the country to one billion dollars," he said, adding that keeping commitments is very important in South Korean culture and the country's people are very quality-conscious.