Lee Jae Myung arrived in New Delhi on Monday for talks with Narendra Modi, aiming to significantly deepen economic cooperation between South Korea and India, particularly in shipbuilding and emerging sectors.
The trip marks the first state visit to India by a South Korean president in eight years.
Speaking at a dinner with members of the Korean community in New Delhi on Sunday, Lee said economic ties between the two countries remain underdeveloped.
“The level of economic cooperation between South Korea and India is still very low,” he said. “Going forward, we will expand that space and make the relationship completely different from what it is now.”
Trade Target and Key Sectors
Both sides are seeking to upgrade their Comprehensive Economic Partnership Agreement (CEPA), with the goal of nearly doubling bilateral trade to $50 billion by 2030 from $25.7 billion last year, according to presidential adviser Wi Sung-lac.
In addition to shipbuilding, potential areas of cooperation include finance, artificial intelligence, and defence. Lee is also scheduled to attend business events with corporate leaders during his visit.
Supply Chains and Strategic Alignment
Lee highlighted the impact of global economic uncertainty and supply chain disruptions linked to the Iran war, saying the two countries could emerge as key strategic partners.
He described India as evolving beyond a consumer market into a major player in global production and supply chains.
Seoul Eyes India for Naphtha Supplies
Amid concerns over Middle East instability, South Korea has turned to India for energy-related supplies. Last month, Seoul requested increased exports of naphtha from India to cushion potential disruptions.
India accounted for about 8% of South Korea’s naphtha imports last year. South Korean Trade Minister Yeo Han-koo said higher imports from India could also help reduce trade imbalances.
South Korea recorded a $12.8 billion trade surplus with India last year, with exports of $19.2 billion and imports of $6.4 billion, according to data from the Korea International Trade Association.
Bridging Trade Gaps
Experts say economic ties have outpaced political engagement. Maeng Hyun-chul of Seoul National University noted that India has long raised concerns about its widening trade deficit with South Korea.
He suggested shipbuilding as a promising area for cooperation, aligning with India’s focus on job creation while leveraging South Korea’s industrial expertise. Consumer and food sectors linked to the global popularity of Korean culture could also offer growth opportunities.
Next Stop Vietnam
After concluding his visit to India, Lee is scheduled to travel to Vietnam as part of his regional tour.
(with inputs from Reuters)
