{"id":2198167,"date":"2022-08-11T17:29:59","date_gmt":"2022-08-11T17:29:59","guid":{"rendered":"https:\/\/www.nknews.org\/pro\/?p=2198167"},"modified":"2023-04-05T16:11:45","modified_gmt":"2023-04-05T07:11:45","slug":"south-korea-and-india-enjoy-growing-ties-but-will-yoon-prioritize-new-delhi","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2022\/08\/south-korea-and-india-enjoy-growing-ties-but-will-yoon-prioritize-new-delhi\/","title":{"rendered":"South Korea and India enjoy growing ties. But will Yoon prioritize New Delhi?"},"content":{"rendered":"

India has become an increasingly important partner for South Korea in the past few years. This became particularly apparent under former president Moon Jae-in\u2019s New Southern Policy, which aimed to elevate South Korea\u2019s ties with Southeast Asian nations and India.\u00a0<\/span><\/p>\n

Although the Moon government made efforts to strengthen the relationship with New Delhi, much is left to be done. With the inauguration of the Yoon Suk-yeol administration and the upcoming 50-year anniversary of the establishment of bilateral diplomatic relations, the two countries\u2019 cooperation in trade, investment and security will likely continue to accelerate.<\/span><\/p>\n

Even so, Seoul and New Delhi don\u2019t always see eye to eye when it comes to big geopolitical questions like how to counter China\u2019s rise, and that could complicate their relationship in the coming years.<\/span><\/p>\n

ECONOMIC COOPERATION<\/b><\/p>\n

Economic cooperation has long been a focal point of the relationship between South Korea and India. Back in 2009, the two countries <\/span>signed<\/span><\/a> the Comprehensive Economic Partnership Agreement (CEPA), aimed at lowering or eliminating import tariffs on a wide range of goods over eight years.\u00a0<\/span><\/p>\n

The agreement ran into trouble in 2015, however, due to India\u2019s large trade deficit. As a result, Seoul and New Delhi have since begun the process of reviewing CEPA to work toward attaining parity in terms of trade balance.\u00a0<\/span><\/p>\n

India is particularly seeking to better <\/span>advance<\/span><\/a> the interests of its local traders and industry in light of trade barriers that Seoul has imposed.\u00a0Negotiations are still ongoing. In January of this year, India\u2019s Commerce and Industry Minister Piyush Goyal and his South Korean counterpart Yeo Han-koo held a <\/span>meeting<\/span><\/a> to discuss bilateral trade issues.\u00a0<\/span><\/p>\n

\u201cThe two Ministers agreed with the spirit of openness to address difficulties expressed by industry from both sides and instructed their respective negotiating teams to meet on a regular basis to conclude the CEPA upgradation process negotiations as soon as possible in a time-bound manner,\u201d <\/span>the joint statement<\/span><\/a> issued after the dialogue stated.<\/span><\/p>\n

\"\"

Former South Korean President Moon Jae-in and Indian Prime Minister Narendra Modi during Moon\u2019s visit to India, July 2018 | Image: Presidential Archives of Korea<\/p><\/div>\n

While Seoul and Delhi hammer out the details of a reenvisioned CEPA, <\/span>trade<\/span><\/a> between India and South Korea has continued to grow.\u00a0\u00a0<\/span><\/p>\n

In 2018, bilateral trade <\/span>surpassed<\/span><\/a> the $20 billion mark for the first time. After dipping during the first year of the pandemic, bilateral trade rebounded the next year <\/span>to a record $23.7 billion<\/span><\/a>, <\/span>driven<\/span><\/a> mainly by<\/span> petroleum oils, electrical machinery and equipment and flat-rolled products of iron or non-alloy steel<\/span>.\u00a0<\/span><\/p>\n

South Korean investment in India has risen over this period as well. Foreign direct investment (FDI) from Korea to India nearly <\/span>doubled<\/span><\/a> between <\/span>2017 and 2019<\/span><\/a> from $466 million in 2017 to $928 million in 2019. Many South Korean companies have also expanded or started operations in India.\u00a0<\/span><\/p>\n

In 2018, Samsung <\/span>inaugurated<\/span><\/a> the world\u2019s biggest smartphone factory in Greater Noida near the capital city. The factory can produce over 100 million units per year and has also become a major source of employment. Then, in Aug. 2021, South Korean food company Orion\u00a0<\/span>invested<\/span><\/a> $26.90 million to set up a manufacturing facility in Bhiwadi city in northern India.<\/span><\/p>\n

Though there haven\u2019t been as many major deals recently,<\/span> Indian investment in South Korea<\/span><\/a> has included Tata acquiring South Korea\u2019s Daewoo <\/span>back in 2004<\/span><\/a> for approximately $102 million. Cumulative <\/span>investment<\/span><\/a> related to that deal has grown to over <\/span>$400 million<\/span><\/a>, according to the Indian Embassy in South Korea.<\/span><\/p>\n

The two Asian countries seem eager to continue this upward trend. Shortly after winning the election in March, then-president-elect Yoon Suk-yeol had a phone call with Indian Prime Minister Narendra Modi and the two <\/span>agreed<\/span><\/a> to work together to boost industrial and business cooperation, particularly in connection with climate change, sustainable growth and supply chains. The larger <\/span>goal<\/span><\/a> is to increase bilateral trade to $50 billion before 2030.\u00a0<\/span><\/p>\n

The recently launched\u00a0Indo-Pacific Economic Framework (IPEF) may also serve as another <\/span>opportunity<\/span><\/a> for economic cooperation between India and South Korea. With India seeking to decrease its trade <\/span>deficit<\/span><\/a> with China, South Korea could prove an attractive partner to work more closely with.\u00a0<\/span><\/p>\n

\"\"

Yoon Suk-yeol at a virtual Indo-Pacific Economic Framework (IPEF) meeting, May 2022 | Image: South Korean Presidential Office<\/p><\/div>\n

DEFENSE COOPERATION<\/b><\/p>\n

In addition to business and investment, the new Yoon administration seems keen to expand Seoul-New Delhi security ties.<\/span><\/p>\n

Yoon made this clear during his phone call with Modi, stating, “I have a firm determination to widen the horizon for practical cooperation on foreign affairs and security with India, a leading nation in the region that shares the values and philosophy of a liberal democracy.\u201d The South Korean president in May also <\/span>emphasized<\/span><\/a> the importance of “strategic cooperation” for world peace and prosperity.\u00a0<\/span><\/p>\n

The Modi government seems on board as well. In Aug. 2019, Indian Defense Minister Rajnath Singh visited South Korea, during which he <\/span>expressed<\/span><\/a> his country\u2019s intention for South Korea to participate in Indian arms procurement projects. One of the most popular export items from South Korea to India was the <\/span>Biho K-30 anti-aircraft defense system<\/span><\/a>.\u00a0<\/span><\/p>\n

Then, in 2020, Singh and then-South Korean Defense Minister Jeong Kyeong-doo\u00a0held talks in New Delhi and <\/span>finalized<\/span><\/a> the “roadmap for defense industry cooperation\u201d aimed at enhancing ROK-India collaboration across a wide range of defense industry fields, including research and development. The two countries\u2019 defense chiefs <\/span>met<\/span><\/a> once more in March 2021, when they \u201cpledged to reinvigorate defense exchanges and cooperation which have been delayed due to the COVID-19 pandemic.\u201d They also vowed to expand ties in diverse areas including cyber, space and maritime issues.<\/span><\/p>\n

Defense and security cooperation is likely to increase if Yoon continues to <\/span>pursue greater cooperation<\/span><\/a> with the Quadrilateral Security Dialogue, of which India is a member. This bolder approach is largely being <\/span>welcomed<\/span><\/a> by New Delhi, which is eager to find more partners that will support its Indo-Pacific strategy.\u00a0<\/span><\/p>\n

THE PATH AHEAD\u00a0<\/b><\/p>\n

The areas for cooperation between India and South Korea are many and the potential to further deepen ties is strong. The inauguration of a new administration in South Korea as well as the occasion of the 50th anniversary of diplomatic relations between India and South Korea next year provide the two nations a unique opportunity to come together and push the relationship to new heights.\u00a0<\/span><\/p>\n

However, with the many different priorities for the new Yoon administration, it remains to be seen whether ties with India will make it to the top of the agenda. Moreover, although the two nations both wish to counter China\u2019s rise in the region, their methods for doing so may be different. In particular, Yoon\u2019s overly pro-U.S. stance may not be <\/span>conducive<\/span><\/a> to the more neutral, middle-power-led regional order that New Delhi would like to see.\u00a0<\/span><\/p>\n

Nevertheless, the two countries should take advantage of the opportunity to expand their teamwork and work toward building a more stable, peaceful, and prosperous region.<\/span><\/p>\n

Edited by Arius Derr<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Defense & Security<\/span><\/a>Domestic Politics<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

India has become an increasingly important partner for South Korea in the past few years. This became particularly apparent under former president Moon Jae-in\u2019s New Southern Policy, which aimed to elevate South Korea\u2019s ties with Southeast Asian nations and India.\u00a0 Although the Moon government made efforts to strengthen the relationship with New Delhi, much is […]<\/p>\n","protected":false},"author":3665,"featured_media":2198180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,26,27,28],"class_list":["post-2198167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-defense-security","tag-domestic-politics","tag-inter-korean-foreign-relations"],"yoast_head":"\nSouth Korea and India enjoy growing ties. 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