Korea–India summit signals stronger economic partnership ahead

SEOUL: South Korean President Lee Jae Myung’s visit to India is poised to inject fresh momentum into bilateral economic ties, with both sides seeking to unlock underdeveloped areas of cooperation and set a more ambitious trajectory for trade and investment.
Meeting Indian Prime Minister Narendra Modi in New Delhi, Lee is expected to prioritise expanded collaboration in shipbuilding, alongside emerging sectors such as finance, artificial intelligence and defence. The visit — the first of its kind in eight years — reflects a shared intent to elevate economic engagement to match broader strategic alignment.
Lee’s own assessment ahead of the summit points to the opportunity at hand, noting that current levels of economic cooperation remain “low”. The two countries are now looking to address this gap by upgrading their Comprehensive Economic Partnership Agreement (CEPA), with a target of increasing bilateral trade to $50 billion by 2030, up from $25.7 billion last year.
The push comes amidst evolving global economic conditions that are prompting both countries to diversify supply chains and strengthen trusted partnerships. Lee highlighted how instability linked to the Iran war is reinforcing the importance of closer coordination, positioning India as a key partner not only as a consumer market but as a growing production and supply chain hub.
Energy cooperation is emerging as a practical pillar of this shift. South Korea’s recent request for increased naphtha supplies from India underscores efforts to mitigate potential disruptions from Middle East tensions. India currently accounts for about 8 per cent of South Korea’s naphtha imports, suggesting scope for further expansion that could also contribute to balancing trade flows.
Trade dynamics remain a consideration in shaping future ties. South Korea recorded a $12.8 billion surplus last year, with exports reaching $19.2 billion compared to imports of $6.4 billion. Expanding imports from India, particularly in energy-related products, is seen as one way to address this imbalance while supporting broader economic cooperation.
Sectoral alignment offers additional opportunities. Shipbuilding, in particular, stands out as a complementary area, combining India’s focus on job creation with South Korea’s industrial strengths. Meanwhile, growing interest in Korean consumer goods and culture could support further expansion in food and retail sectors.
As Lee engages with business leaders during his visit, the emphasis will be on translating policy intent into tangible outcomes. The summit signals a constructive step towards building a more balanced, diversified and forward-looking economic partnership between the two countries.