Finance Minister Nirmala Sitharaman met the South Korean Minister for Finance and Economy Choo Kyung-ho on the sidelines of G20 finance minister and central bank governors (FMCBG) annual meet in Washington.
She discussed possibilities for G20 Finance in 2023 and sought South Korea’s support for India’s G20 2023 Presidency.
The Finance Minister also invited her counterpart to India for the 6th India-South Korea Finance Ministers meeting.
The trade and economic relations between India and the Republic of Korea (Korea) have gathered momentum in recent years with annual bilateral trade reaching US$23.7 billion in 2021 (as per data from Korea International Trade Association), highest ever bilateral trade figure till now. The bilateral Comprehensive Economic Cooperation Agreement (CEPA), set in place since 2010, has spurred trade and investments both ways. In 2021, Korea’s investment to India recorded US$218 million. Korea’s total FDI to India from 1980 up to December 2021 stands at US$7.27 billion. Investments from India to Korea are to the tune of approx. US$3 billion led by Tata Daewoo, Ssangyong and Novelis.
Bilateral economic ties received a visible boost from the visit of Prime Minister Narendra Modi to the Republic of Korea from 18-19 May 2015. India and Korea decided to commence negotiations to amend the CEPA, strengthen cooperation on energy, electronics and shipbuilding industries, including setting up of a Joint Working Group for Cooperation on the Shipbuilding sector and another in the field of Electronics Hardware manufacturing. ROK offered to provide US $10 billion financing (development assistance and concessional credit) to India for infrastructure projects. Recognizing the importance of the shipping industry in the bilateral relationship, the PM also visited the Shipyard of Hyundai Heavy Industries in Ulsan. Leaders of both countries addressed the inaugural session of the India-Korea CEOs Forum to promote bilateral economic cooperation, while the PM Modi also met the leadership of the top Korean conglomerates. ‘Korea Plus’ desk was created as a single window in India to address all the issues raised by Korean companies as a result of the PM’s visit. State visit of President Moon Jae-in during 10-12 July, 2018 to India has boosted bilateral engagement with a joint vision of people, peace and prosperity. A target of bilateral trade worth $ 50 billion to be achieved by 2030 was set up by Prime Minister Modi and President Moon during this visit. To further strengthen bilateral ties, PM Narendra Modi visited ROK during 21-22 February, 2019 and held a series of bilateral and business engagements. PM Modi unveiled a bust of Mahatma Gandhi at prestigious Yonsei University to commemorate 150th birth anniversary of Mahatma Gandhi during this visit and also accepted the Seoul Peace Prize conferred upon him by Seoul Peace Prize Foundation.
Reference: Embassy of India in Seoul: India – RoK Trade and Economic Relations