South Korean President Lee Jae Myung is scheduled for discussions with Indian Prime Minister Narendra Modi in New Delhi on Monday, with the primary objective of significantly enhancing economic cooperation between the two nations.
This visit represents the first state visit by a South Korean president to India in eight years and places a strong emphasis on key sectors, including shipbuilding, finance, artificial intelligence, and defence.
Speaking on Sunday at a gathering of the Korean community in New Delhi, Lee stated, “The level of economic cooperation between South Korea and India is still very low.” He added, “Going forward, we will expand that space and make the relationship between South Korea and India completely different from what it is now.”
Both countries are actively working to enhance their Comprehensive Economic Partnership Agreement, with an ambitious target to nearly double bilateral trade to $50 billion by the year 2030. This is a substantial increase from the $25.7 billion recorded last year, according to presidential adviser Wi Sung- lac.
President Lee is also anticipated to connect with prominent business leaders through various events, as both nations explore avenues for deeper collaboration within strategic industries.
He highlighted that amid supply chain instabilities and global economic challenges stemming from Middle East tensions, both countries are positioned to become each other’s “most important strategic partners.”
Furthermore, Lee described India not merely as a consumer market but as a crucial participant in global production and supply chains.
South Korea requested India to augment naphtha supplies last month to mitigate potential disruptions associated with Middle East tensions. India constituted approximately 8% of South Korea’s naphtha imports in the previous year.
South Korea’s Trade Minister, Yeo Han-koo, indicated that increased imports could assist in addressing the trade imbalances between the two nations.
Data from the Korea International Trade Association reveals that South Korea registered a trade surplus of $12.8 billion last year, with exports valued at $19.2 billion and imports at $6.4 billion.
During a recent policy seminar, Maeng Hyun-chul from Seoul National University Asia Center pointed out India's persistent concerns regarding a growing trade deficit with South Korea, noting that political relations have not kept pace with economic engagement.
He suggested that the shipbuilding sector offers significant opportunities for joint ventures, aligning with India’s objectives for job creation and South Korea’s industrial expertise. Additionally, the food and consumer goods sectors, tied to Korean culture, could also stimulate growth.
President Lee is expected to proceed to Vietnam following the conclusion of his trip to India.
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