South Korea’s Lee meets Modi to enhance trade, aiming for $50 billion in bilateral growth by 2030
President Lee aims to enhance economic relations with India, emphasizing shipbuilding, supply chains, and increasing bilateral trade to $50 billion.
South Korean President Lee Jae Myung will engage in discussions with Indian Prime Minister Narendra Modi in New Delhi on Monday, with the goal of enhancing economic collaboration between the two nations.
This visit signifies the first state visit by a South Korean president to India in eight years, emphasizing key sectors including shipbuilding, finance, artificial intelligence, and defense.
“The extent of economic collaboration between South Korea and India remains quite limited,” Lee remarked on Sunday during a dinner gathering with members of the Korean community in New Delhi.
“In the future, we will broaden that area and transform the relationship between South Korea and India into something entirely new.”
Both countries are collaborating to enhance their Comprehensive Economic Partnership Agreement, aiming to nearly double bilateral trade to $50 billion by 2030, an increase from the $25.7 billion recorded last year, as stated by presidential adviser Wi Sung-lac.
Lee is anticipated to interact with corporate leaders at business events, as both parties seek to delve into deeper collaboration across strategic industries.
He observed that the instability in the supply chain and global economic pressures associated with tensions in the Middle East would establish both countries as “the most important strategic partners” to one another.
Lee described India as not merely a consumer market, but as a significant player in global production and supply chains.
In the previous month, South Korea made a request to India for an increase in naphtha supplies to mitigate potential disruptions related to tensions in the Middle East. Last year, India represented approximately 8% of South Korea’s naphtha imports.
South Korean Trade Minister Yeo Han-koo stated that heightened imports may assist in resolving trade imbalances between the two nations.
Last year, South Korea achieved a trade surplus of $12.8 billion, with exports amounting to $19.2 billion and imports totaling $6.4 billion, as reported by the Korea International Trade Association.
During a recent policy seminar, Maeng Hyun-chul from the Seoul National University Asia Center highlighted India’s enduring worries regarding an expanding trade deficit with South Korea, while also pointing out that political relations have not kept pace with economic connections.
He stated that shipbuilding offers significant opportunities for collaboration, aligning with India’s objectives for job creation and South Korea’s industrial capabilities, while sectors related to food and consumer goods tied to Korean culture could further stimulate growth.
Lee is anticipated to journey to Vietnam following the completion of his visit to India.
