South Korea, India Pledge to Strengthen Trade and Defense Cooperation

During a recent summit in New Delhi, South Korean President Lee Jae Myung and Indian Prime Minister Narendra Modi outlined plans to increase bilateral trade to $50 billion by 2030. This goal comes as both nations navigate global economic shifts and geopolitical challenges. Lee highlighted the importance of securing stable energy resources and critical raw materials, emphasizing their shared commitment to deepening collaboration in a rapidly changing international landscape.

A Strategic Shift in Bilateral Relations

Lee’s three-day state visit to India, which began on Sunday, included discussions with Modi on expanding economic ties and aligning strategic priorities. The leaders underscored their mutual interest in the Indo-Pacific region, with a focus on sectors such as shipbuilding, artificial intelligence, and defense. Modi reiterated the significance of these partnerships, stating that the two countries aim to double their trade volume to reach the $50 billion target.

India’s role in supplying naphtha to South Korea has also gained prominence. Last year, India accounted for approximately 8% of South Korea’s naphtha imports, a figure that underscores the growing reliance on Indian resources amid disruptions in the Strait of Hormuz and the broader Middle East crisis. Lee noted that these challenges have elevated the strategic value of their alliance, calling for a more robust and diversified economic relationship.

“The economic cooperation between South Korea and India is still at a relatively low level,” Lee remarked during a dinner with the Korean community in New Delhi. “Moving forward, we will create new opportunities to transform our partnership into something entirely different from its current state.”

South Korea’s trade surplus with India reached $12.8 billion in 2023, driven by exports valued at $19.2 billion and imports of $6.4 billion. This visit marks Lee’s first state trip to India since assuming office and the first by any South Korean leader in eight years. The itinerary also includes meetings with corporate leaders to further solidify business ties.

Following the summit, Lee will travel to Vietnam to continue advancing regional partnerships. To view related multimedia content, ensure JavaScript is enabled and use a browser that supports HTML5 video.