South Korea and India Forge $50B Trade and Security Alliance by 2030
NEW DELHI - President Lee Jae Myung stressed that Korea and India will work to ensure a stable supply of energy resources and raw materials, including naphtha, underscoring that restoring stability in the Middle East region is critical to global security and the economy in a summit with Indian Prime Minister Narendra Modi on Monday.
"In light of recent developments in the Middle East, we will continue to strengthen bilateral cooperation to ensure a stable supply of energy resources and key raw materials, including naphtha," Lee said in a joint press conference alongside Modi after their summit in New Delhi.
During their summit, Lee and Modi exchanged views on the latest developments in the Middle East amid the U.S.-Israeli war on Iran and dueling blockades of the Strait of Hormuz, a critical global oil chokepoint.
The two leaders agreed to establish a Korea-India Industrial Cooperation Committee, a ministerial-level body to strengthen bilateral collaboration in trade and investment and strategic sectors such as critical minerals, nuclear energy and clean energy.
Lee said the two leaders "shared the view that the restoration of peace and stability to the region is critical to global security and the economy."
Korea and India signed 15 MOUs and documents on the occasion of the summit, covering cooperation in the fields of technology and trade for the steel supply chain; ports; cultural and creative industries; small- and medium-sized enterprises; sports; climate and the environment; maritime heritage; and financial services.
Lee highlighted that Korea is establishing itself as a global leader across sectors, including shipbuilding, semiconductors, the defense industry and cultural industries.
Lee said he and Modi shared the view that in these uncertain times, "Korea and India are well positioned to become ideal partners for comprehensive cooperation that fosters mutual growth and innovation."
The two leaders also agreed to further advance bilateral economic cooperation and expand collaboration in strategic areas, including shipbuilding, finance, AI, national defense and the defense industry.
Lee highlighted that in the shipbuilding sector, the two countries will work together to ensure that Korean companies' technological expertise "can benefit from the policy support of India's central and local governments" to enable new opportunities in India's shipbuilding market
This includes the construction of shipbuilding facilities, guaranteed placement of shipbuilding orders and production subsidies.
Through the MOU on cooperation between financial authorities, the two sides plan to lay the groundwork for Korean financial institutions to enter India's financial market, the world's third-largest, and to strengthen cooperation in financial services and fintech.
Korea and India established diplomatic relations in 1973, concluded their Comprehensive Economic Partnership Agreement (CEPA) in 2010 and upgraded bilateral ties to a special strategic partnership in 2015.
The two sides signed a joint declaration to resume negotiations to upgrade the Korea-India CEPA, agreeing to expedite the process and aim for a more favorable trade and investment environment for Korean businesses.
Lee said the new agreement will "fully reflect new trade norms, enabling our two countries to respond in a timely manner to evolving trade conditions, including in such areas as supply chains and the green economy."
Another agreement was made to launch a five-year cultural exchange program between Korea and India from 2026 to 2030.
Notably, under the MOU on cooperation in cultural and creative industries, the two countries agreed to establish a "Mumbai Korea Center," a permanent K-pop performance hall and an overseas hub for K-culture, to bring K-pop and Bollywood together.
The two leaders adopted the Joint Strategic Vision for the Korea-India Special Strategic Partnership.
The two countries aim to double bilateral trade, from its current $25 billion annually to some $50 billion by 2030.
Lee highlighted that it "is a great honor and pleasure to visit India - the world's largest democracy and the most dynamic engine of growth." He said he also looks forward to Modi's visit to Korea next year.
Lee said he also looks forward to India "continuing to play a constructive role in promoting peace on the Korean Peninsula and in the region."
On Sunday, Lee, accompanied by first lady Kim Hea Kyung, arrived in New Delhi for a three-day state visit to India. Lee is the first Korean president to make a state visit to India in eight years.
On Monday morning, Modi greeted Lee and first lady Kim Hea Kyung in a welcome ceremony at the Rashtrapati Bhavan, the official presidential palace in New Delhi.
Later Monday morning, Lee and Kim paid respects at Raj Ghat, a memorial dedicated to Mahatma Gandhi, in New Delhi. The presidential couple laid flowers and observed a moment of silence.
Lee and Modi also planted a commemorative ashoka tree at Hyderabad House, the Indian state guesthouse, before heading into their bilateral talks.
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