- India, South Korea to expand cooperation in the energy sector.
- The first South Korean presidential visit to India in eight years.
- South Korean President to visit Vietnam after India.
India and South Korea said on Monday they would strengthen their economic ties by expanding cooperation in energy, critical minerals, shipbuilding, semiconductors and steel as they seek to double their trade to $50 billion by 2030.
New Delhi and Seoul also agreed to resume and step up talks to reinvigorate their 2010 trade deal, as India wants its trade to be more balanced and South Korea wants greater market access to the world’s fastest-growing major economy.
South Korean President Lee Jae Myung is in India for a three-day visit, the first South Korean presidential visit to the country in eight years.
“We decided to upgrade the framework of economic cooperation between the two countries to create a new engine for shared growth,” Lee told reporters after talks with Indian Prime Minister Narendra Modi.
The two countries established a ministerial-level economic cooperation committee for the first time, Lee said, adding that they would strengthen cooperation in areas such as nuclear power plants, clean energy, and trade and investment.
With the Iran war squeezing global energy supplies, India and South Korea will also continue to cooperate to ensure a stable supply of energy resources and key raw materials such as naphtha, Lee added.
Modi said Lee’s visit was extremely significant and the two countries had taken important decisions to increase two-way trade to $50 billion by 2030 from around $27 billion currently.
“Today we are laying the foundation for the success story of the next decade,” Modi said, recalling strong civilizational ties between the two countries dating back several centuries.
Big investment in India’s steel sector
Indian Commerce Minister Piyush Goyal said he held talks with his South Korean counterpart, Yeo Han-koo, discussing ways to resume and renew the trade pact and explore opportunities to deepen cooperation in the areas of industry, green energy and digital trade.
Lee will attend a joint business forum conference later on Monday, where about 250 South Korean participants are expected, including executives from well-known names in India such as Samsung Electronics, Hyundai Motor and LG Group, South Korea’s Yonhap news agency said.
The two sides also plan to sign a total of 20 private sector memorandums of understanding on the sidelines of the forum, covering areas including shipbuilding, digital technology and energy, Yonhap said.
Separately, South Korea’s Posco Holdings said in a regulatory filing on Monday that its steelmaking unit plans to build a joint venture integrated steel plant with India’s JSW in Odisha state. Posco’s investment until the end of 2031 is expected to be around $1.09 billion, the filing said.
The joint venture agreement to set up a 6 million tonne per annum steel plant in Odisha was announced last week.
At a policy seminar in South Korea’s parliament last week, Maeng Hyun-chul, a researcher at Seoul National University’s Asia Center, noted India’s long-standing complaint of a widening trade deficit with South Korea, saying political ties had not kept pace with commercial ties.
South Korea had a trade surplus of $12.8 billion last year, with exports worth $19.2 billion and imports worth $6.4 billion, according to data from the Korea International Trade Association.
Lee will visit Vietnam after India.
