21 Apr India and South Korea bilateral relations
This article covers “Daily Current Affairs”
SYLLABUS MAPPING
GS-2- International Relations – Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.
FOR PRELIMS
All the bilateral treaties between India and South Korea.
FOR MAINS
How the bilateral relations between India and South Korea have steadily progressed and what are the present challenges?
Why in the News?
South Korean President Lee Jae-myung is on a three-day state visit to India (19–21 April, 2026) to strengthen the “Special Strategic Partnership”. This is the first state visit by a South Korean president in 8 years, focusing on expanding the economic relationship, with over a dozen MoUs signed, including a digital bridge for IT and AI. The visit emphasizes deepening ties amid global supply chain shifts and enhancing cooperation on critical technologies.
India–South Korea relations overview
India and the Republic of Korea (ROK) formally established their diplomatic ties on 10 December 1973. Since then, several trade agreements have been reached such as the Agreement on Trade Promotion and Economic and Technological Co-operation in 1974, the Agreement on Co-operation in Science & Technology in 1976, the Convention on Double Taxation Avoidance in 1985, and the Bilateral Investment Promotion/Protection Agreement in 1996. Trade between the two nations has increased greatly from $530 million during the fiscal year of 1992–1993 to 26.89 billions in 2024–2025.
Key Pillars of India-South Korea Relations:
* Economic and Trade Ties : The two countries aim to double bilateral trade to billion by 2030, supported by the Comprehensive Economic Partnership Agreement (CEPA). Key cooperation areas include semiconductors, electronics, electric vehicles, green energy, and shipbuilding.
* Defence and Security Cooperation : A central pillar involving high-level defense dialogues, joint production, and research. A notable example is the K9 Vajra-T gun system produced in India using South Korean technology.
* Strategic Partnership (Indo-Pacific focus) : India’s “Act East Policy” aligns with South Korea’s “New Southern Policy”. Both nations focus on regional peace, maritime security, and stabilizing supply chains.
* Technology and Innovation : Collaboration in future-oriented technologies like Artificial Intelligence (AI), digital public infrastructure, and fintech.
* Cultural and People-to-People Ties : Buddhism reached Korea Centuries after it originated in India, Mahayana Buddhism arrived in China through the Silk Road in the first century CE via Tibet, then to the Korean peninsula in the third century during the Three Kingdoms period, after which it was transmitted to Japan.
Why South Korean president India visit is important in current age of conflicts?
1. Economic Security and Supply Chain Resilience (De-risking from China) :
* Amidst global economic volatility and US tariff challenges, both nations are seeking to diversify their supply chains away from over-reliance on single major powers.
* Targeting $50 Billion Trade: Both leaders have committed to doubling bilateral trade from approximately $27 billion to $50 billion by 2030.
* Strategic Industrial Cooperation: The focus has shifted to high-technology sectors, including semiconductors (integrating Korean fabrication expertise into India’s ecosystem), AI, clean energy, and advanced electronics.
* Manufacturing Pivot: South Korea is increasingly viewing India as a key manufacturing and export hub—a “factory for the world”—rather than just a consumer market
2. Geopolitical Coordination on Global Conflicts
* The two leaders held substantive discussions on the ongoing upheavals in Ukraine and the Gulf region, emphasizing a shared commitment to peace, security, and multilateralism.
* Middle East Strife: South Korea is seeking to rely on India’s diversified energy relations to stabilize supply chains impacted by the West Asia conflict.
* Non-Proliferation: The discussions included cooperation on sensitive tech to prevent it from reaching adversaries, with Korea appreciating India’s support for the denuclearization of the Korean peninsula.
3. Defense and “Make in India” Acceleration
* Building on the success of the K-9 Vajra howitzers, the visit aims to deepen defense manufacturing and technology transfer, allowing India to diversify its defense suppliers.
* The talks addressed expanding defense cooperation to naval systems, aerospace platforms, and surveillance technology, enhancing India’s defense industrial base.
4. Strategic Alignment in the Indo-Pacific
* The visit strengthens the convergence between India’s Act East Policy and South Korea’s Indo-Pacific strategy.
* Maritime Cooperation: Given the energy insecurities arising from the West Asian conflict (“Hormuz Shock”), both nations are focusing on securing maritime routes.
* Shipbuilding Partnership: A Comprehensive Framework for Partnership in Shipbuilding was signed, with Korea bringing advanced technology to support India’s Maritime Amrit Kaal Vision 2047 and reducing dependence on foreign vessels.
Key challenges that still remain at the forefront of India-South Korea relations:
1. Economic and Trade Imbalances
* Persistent Trade Deficit: India faces a widening trade deficit with South Korea, which has led to domestic pressure in India to renegotiate the existing Comprehensive Economic Partnership Agreement (CEPA). While bilateral trade reached over $26 billion in 2024-25, India only exports $5.8 billion to South Korea.
* CEPA Limitations: The 2010 CEPA has not functioned as a “win-win” partnership, with India complaining that Korean markets have not allowed sufficient access to Indian products.
* Reluctance to Upgrade: Negotiations to upgrade the CEPA have been slow, requiring “early conclusion” to address trade imbalances, non-tariff barriers, and make the pact more contemporary, as noted by Commerce Minister Piyush Goyal.
2. Defense and Technology Cooperation Hurdles
* Tech Transfer Resistance: A major sticking point is the reluctance of Korean firms to transfer advanced technologies to Indian companies, hindering the ‘Make in India’ policy.
* Manufacturing Bottlenecks: While India seeks to produce weapons locally (like the K30 Biho), the slow progress in joint development and technology transfer has threatened to cap the defense industry partnership.
* Overemphasis on Buying: Korean defense manufacturers often focus on direct sales rather than deeper, localized production partnerships, which does not satisfy India’s defense self-reliance goals
3. Geopolitical and Strategic Gaps
* Divergent China Views: While both nations are wary of China, South Korea maintains a highly integrated economic relationship with Beijing, while India has a more conflicted relationship, creating challenges in joint Indo-Pacific security initiatives.
* Lack of Strategic Depth: Despite the “special” designation, bilateral Foreign Policy and Security Dialogues have been sporadic, falling short of the required frequency to align their strategic interests, particularly in naval security.
* China-Friendly Policy Risks: The potential for a “pro-China” shift in future Korean governments could reduce collaboration, undermining India’s strategy to balance Beijing
4. People-to-People and Social Challenges
* Cultural Center Failures: While official cultural centers were opened with fanfare, they have often failed to move beyond the urban elite and connect with the broader public in both nations.
* Racism and Integration: There have been instances of racial prejudice against the Indian community in South Korea, necessitating more work on societal integration and sensitization
5. Investment and Regulatory Obstacles
* Regulatory Hurdles in India: South Korean investors have expressed concerns about India’s complex taxation, bureaucratic delays, quality control orders (QCOs), and land/labor regulations.
* Declining Investment Trends: Despite the potential, there have been periods of decline in the amount and number of new Korean companies investing in India.
Conclusion
While both countries have progressed enough in their bilateral relations, which is visible in their increasing bilateral trade, joint defense production, free and open Indo-Pacific ideology etc. Still, there are various challenges present with respect to trade imbalances, people-to-people connections, regulatory obstacles etc. These challenges must be looked after in order to establish a fair and equal relationship between the countries.
Prelims Question:
With reference to India-South Korea relations, consider the following statements:
1. The bilateral trade between the two nations is governed by the Comprehensive Economic Partnership Agreement (CEPA) implemented in 2010.
2. The K-9 Vajra-T self-propelled howitzer, inducted by the Indian Army, is a key example of defense partnership between India and South Korea.
3. South Korea is a member of the QUAD (Quadrilateral Security Dialogue) aimed at the Indo-Pacific region.
How many of the above statements are correct?
A. Only one
B. Only two
C. All three
D. None
Answer: B (Only two are correct)
Statement 1 is correct: The India-Korea CEPA came into force in 2010 to boost bilateral trade.
Statement 2 is correct: The K-9 Vajra is developed in partnership with South Korea’s K-9 Thunder.
Statement 3 is incorrect: South Korea is not a member of the QUAD; the members are India, USA, Japan, and Australia
Mains Question:
Q. Examine the potential for collaboration between India and South Korea in high-tech manufacturing, particularly in semiconductors and electric vehicles, to strengthen global supply chains.
[15 Marks, 250 Words]
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