South Korea, one of the key players in the global economy and international politics, holds a position of strategic importance in Asia. It plays a significant role in India’s Act East Policy which aims to encourage cultural ties, economic cooperation, and develop strategic relationships with Asia-Pacific countries. Additionally, South Korea’s Southern Policy, which seeks to broaden relations beyond its immediate region, recognizes the crucial part India has to play.
The Driving Forces Behind India-South Korea Relations
Political relations between India and South Korea have intensified over the years. From India’s involvement in the Korean War ceasefire agreement to the bilateral relationship upgrade to a ‘special strategic partnership’ in 2015, the collaboration between the two countries has deepened. This political understanding is reflected in the robust trade and investment relations.
Trade Relations and Comprehensive Economic Partnership Agreement (CEPA)
The Comprehensive Economic Partnership Agreement (CEPA), established in 2010, is a free trade agreement that has given rise to increased trade and investments between India and South Korea. CEPA focuses on services and investments trade and may also encompass areas such as trade facilitation, customs cooperation, and Intellectual Property Rights.
India has signed CEPAs with South Korea and Japan and initiated discussions on the same with the United Arab Emirates (UAE) in 2021. There are ongoing plans for a potential CEPA with Bangladesh. Through these agreements, India seeks to enhance its trade relations with these countries.
South Korea and India set a bilateral trade target of USD50 billion before 2030 during a summit meeting in 2018. Bilateral trade between India and South Korea reached an all-time high value of USD21.5 billion in 2018.
The Challenge of Exporting Indian Products to Korea
However, Indian exporters have encountered difficulties while exporting products such as steel, engineering, and agri products to Korea due to strict regulatory issues. This has led to an increased trade deficit from USD5 billion in 2008-09 to USD8 billion in 2020-21. Future negotiations are planned to address these issues and promote supply chain resilience.
India-South Korea Defence Cooperation
Defence cooperation between India and South Korea has been marked by agreements on defence and logistics cooperation and a Memorandum of Understanding (MoU) on cooperation between the two Coast Guards. Joint exercises have also taken place with the aim of enhancing interoperability, and a MoU is proposed to improve maritime security in the Indian Ocean Region.
Cultural Exchanges Between India and South Korea
Cultural exchanges between India and South Korea have been extensive and varied. From ancient travelogues that documented Indian culture, politics, and society, to contemporary poetry, the cultural connection has always been strong. This legacy continues with the establishment of Indian Cultural Centres in Seoul and Busan and the proposal of renaming Ram Katha Park as Queen Heo Hwang-ok memorial park, honoring the Korean Queen believed to have had Indian roots.
Shared Multilateral Platforms
Both India and South Korea are members of key multilateral platforms including the United Nations, World Trade Organisation, ASEAN Plus, East Asia Summit (EAS), and G-20. These platforms provide opportunities for furthering dialogue and action on shared concerns and interests.
Overall, the relationship between India and South Korea has evolved over the years to become multifaceted. However, there is a considerable opportunity to expand ties between the two nations, making it a unique relationship in Asia. Strengthening cultural relations, building on people-to-people contacts, promoting democracy and liberal values, and nourishing civilizational connections will help nurture the relations between these two countries.