India South Korea Relations: Trade, CEPA Upgrade and Indo-Pacific Strategy for UPSC

Context: India South Korea Relations

With the visit of Han Duck-soo from South Korea to India, the two countries are seeking to upgrade ties amid Indo-Pacific shifts, supply-chain risks, and economic uncertainties.

India–South Korea Relations

Evolution: 1973 ties | Special Strategic Partnership (2015) | Act East linkage

Economy: Trade $26–27 bn | Exports $5.8 bn | Imports $21 bn | Deficit ~$15 bn | Target $50 bn (2030)

Investment: 13th largest FDI source | $6–7 bn | Auto, electronics, steel

Framework: CEPA (2010) → underutilised, imbalance persists

Strategic Convergence: Indo-Pacific | supply chains | defence cooperation

Key Sectors: Semiconductors | EVs | shipbuilding | AI | clean energy

Limitation: Strong economics, weak strategic depth

Key Developments (Recent Visit)

Trade: CEPA upgrade | trade expansion to $50 bn
Technology: Semiconductors | AI | critical minerals
Supply Chains: Resilience, diversification
Defence: Maritime + security cooperation expansion
Industry: MSME, manufacturing linkages
Indo-Pacific: Greater alignment
Investment: Push for increased Korean investment

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India South Korea Relations: Trade, CEPA Upgrade and Indo-Pacific Strategy for UPSC

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