South Korean President Lee Jae Myung’s three-day visit to India comes at a crucial time and provides a perfect setting for both countries to step up their economic and strategic ties to the next level against the backdrop of heightened global uncertainties.
Both countries have had a stable relationship so far, with several top Korean companies, from Samsung to Hyundai and reaping the benefits of the warm and friendly ties between Seoul and New Delhi.
There have been several high-level visits between the two countries, including Prime Minister Narendra Modi’s interactions with the Korean leadership. Several state chief ministers have also visited South Korea to court investment in their respective states.
But the latest visit assumes significance given the great reset that is happening across the world, from the scramble to set up alternate supply chains to securing critical minerals. It also fits in well with India’s Act East policy and efforts to have a strong, dependable ally in the Indo-Pacific region.
The two sides are expected to hold talks on strengthening bilateral cooperation across a range of areas, including shipbuilding, trade, investments, AI, semiconductors, critical and emerging technologies, people-to-people connect, and cultural exchanges.
Strengthening ties across sectors
The fragmented global architecture also provides significant opportunities for both countries to build on the existing strategic, defence, and security partnership, which has been upgraded to a special strategic partnership.
Industry experts say there is huge potential for ramping up bilateral ties in the automotive sector, defence, electronics and digital technologies, steel, and shipbuilding. For India, shipbuilding has emerged as a crucial area against the backdrop of broken supply chains and a lack of carrier availability due to the war in West Asia.
The success stories of Korean companies in India should provide enough comfort to Seoul to strengthen and cement economic ties. Take the example of Samsung, which set up a base in India nearly 30 years ago. The strong conviction that the opening up of the Indian economy would present a robust demand centre for consumer goods has been proved right. Korean innovation can help Indian companies scale up and compete with the best in the world.
Korean success stories in India
Samsung’s success story is an example of how stable economic ties between partners can provide the foundation for robust growth. The company has emerged as one of the largest exporters of smartphones from India and has helped create jobs.
Korea’s Posco Group and India’s JSW have announced a joint venture agreement to set up a 6 million tonnes per year steel plant in Odisha, a pact expected to help the Indian company access technology for high-grade steel products for automotives and other applications.
The story of Hyundai and other Korean “chaebols” in India is similar. Blockbuster IPOs of Korean subsidiaries Hyundai and Electronics have signalled the strong commitment of these giants to the Indian financial landscape.
Industry data shows that South Korea’s advanced manufacturing and hardware expertise in sectors such as semiconductors, electronics, and electric vehicles are partnering with India’s software, IT services, and startup ecosystem to drive innovation. The strong collaboration is being led by nearly 600 Korean firms in India. South Korea has emerged as the 13th largest FDI investor in India, with an estimated investment of $6.8 billion between April 2000 and June 2025, according to industry data.
Research, innovation and trade
According to the industry group Confederation of Indian Industry (CII), the demographic contrast between South Korea’s ageing population and India’s young, expanding workforce opens space for mutually beneficial cooperation in research, innovation, and talent exchange.
It identified strengthening academic partnerships, fostering joint technology development, and building cross-border innovation ecosystems that can boost competitiveness and help both countries address future workforce and technological challenges.
Several Korean universities have already started wooing Indian students for their famous engineering courses—an area of cooperation that can be expanded, given geopolitical realities.
India’s ambition to scale up manufacturing in the country can get a welcome boost from its collaboration with Korean companies, universities, and institutes of excellence.
India’s strengths in the digital space and Korea’s expertise in manufacturing can help boost trade between the two, which Seoul and New Delhi have vowed to take to $50 billion by 2030.
There are several areas where substantial progress can be made. For example, infrastructure investments from Korea in India remain modest and can be significantly stepped up.
Both sides must also use the opportunity to narrow differences on the trade front. New Delhi must push for more market access for its firms, and both countries must work on cutting down layers of trade barriers for the relationship to realise its full potential.
South Korea has demonstrated to the world its resilience and how it emerged as a major Asian economic powerhouse from the ravages of war, while India has emerged as the fastest-growing major economy in the world and is considered a digital power centre.
Both countries must now come together to step up ties and work on removing roadblocks to emerge as trusted partners in a fragmented world. Strong ties with an Asian powerhouse will also help India realise its dream of a Viksit Bharat by 2047.
Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.