India and South Korea Monday decided to restart negotiations to upgrade the trade pact, signing agreements on digital cooperation in AI, small and medium enterprises, sports, and culture, as Prime Minister Narendra Modi met the visiting President of South Korea, Lee Jae Myung.
They also agreed on a joint strategic vision for the India-South Korea special strategic partnership, and a comprehensive framework for partnership in shipbuilding, shipping and maritime logistics.
After the bilateral meeting in Hyderabad House, PM Modi said, “Today, with President Lee’s visit, we are going to transform this trusted partnership into a futuristic partnership. We will realise new opportunities for cooperation in every field, from chips to ships, talent to technology, environment to energy, and together we will ensure the progress and prosperity of both countries.”
Referring to the wars in West Asia and Europe, he said, “In this era of global tension, India and Korea together send a message of peace and stability. We are very pleased that today Korea is joining the International Solar Alliance and the Indo-Pacific Oceans Initiative. Through our joint efforts, we will continue to contribute to a peaceful, progressive, and inclusive Indo-Pacific.”
PM Modi said, “We also agree that reform of global institutions is essential to address global challenges.”
President Lee said, “We agreed to maintain close collaboration in addressing regional peace and international issues. Prime Minister Modi and I exchanged our views on the recent events unfolding in the Middle East, and agreed that restoring stability and peace in the Middle East is crucial to global security and the economy.”
Modi also said, “Bilateral trade between India and Korea has reached $27 billion today. We have taken several important decisions today to increase this to $50 billion by 2030”. He was referring to the joint declaration on resumption of talks to upgrade the Comprehensive Economic Partnership Agreement (CEPA), which Commerce Minister Piyush Goyal signed.
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India and South Korea’s Comprehensive Economic Partnership Agreement (CEPA), in force since 2010, has strengthened bilateral economic engagement. Bilateral trade has grown from $14.2 billion at the time of its implementation to $26.89 billion in 2024–25, an increase of nearly 90 per cent.
Of this, India’s imports from South Korea account for approximately $21 billion, while exports stand at about $5.8 billion. Both sides have held 11 rounds of CEPA upgradation negotiations, with the latest round in July 2024.
The newly appointed Chief Negotiators met in February 2026 to advance the process.
President Lee said, “Considering the current situations in the Middle East, we will sustain cooperation for supply stability of energy resources and key commodities…we agreed to speed up the negotiations to upgrade our CEPA to create more favourable trade and investment conditions for our businesses.”
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PM Modi said, “To facilitate financial flows between the two countries, we have launched the India-Korea Financial Forum. To strengthen business cooperation, we have established an Industrial Cooperation Committee. To enhance cooperation in critical technologies and supply chains, we are initiating an Economic Security Dialogue.”
Also, he said, “To facilitate the entry of Korean companies, especially SMEs, into India, we will also establish a Korean Industrial Township. And within the next year, we will upgrade the India-Korea Trade Agreement.”
On the pact on digital cooperation, Modi said, “We are launching the India-Korea Digital Bridge to deepen partnerships in AI, semiconductors, and information technology. We are signing MoUs in areas such as shipbuilding, sustainability, steel, and ports.”
Maritime cooperation
On shipbuilding, a strategic sector, Lee said, “We agreed to expand cooperation on strategic industries, combining our respective strengths in the field of shipbuilding, we aim to bring together the outstanding technology of Korean businesses and the policy support of India’s
central and local governments in constructing shipbuilding facilities, securing shipbuilding orders and providing incentives for ship production, cooperating so that Korean companies can seek new opportunities in the Indian market.”
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The two sides also launched a dialogue between their foreign ministries on global themes, including climate change, the Arctic, and maritime cooperation.
On cultural cooperation, Lee said they will launch the Mumbai Korea Centre as a permanent K-pop performance hall and international hub of K culture, serving as a venue for K-pop and Bollywood to meet and create new cultural collaborations.
Modi echoed, “Through collaboration in the culture and creative industries, we will also break new ground in film, animation, and gaming… Today, K-pop and K-dramas are becoming increasingly popular in India. Similarly, recognition of Indian cinema and culture is growing in Korea. We are delighted that President Lee himself is a fan of Indian cinema. To strengthen this cultural connection, we will organise the India-Korea Friendship Festival in 2028.”
President Lee, who arrived on Sunday, also met President Droupadi Murmu and External Affairs Minister S Jaishankar.
