By Na Jeong-ju
Korea Times Correspondent
NEW DELHI ― President Lee Myung-bak and India's Prime Minister Manmohan Singh agreed Monday to double the bilateral trade between Korea and India to $30 billion by 2014 from 2008 based on the Comprehensive Economic Partnership Agreement (CEPA), the de-facto free trade accord that took effect Jan. 1.
At a summit at Hyderabad House, formerly a residence of Indian princes that is now used for banquets and meetings with foreign guests, Lee and Singh decided to foster a strategic partnership that is expected to deepen bilateral cooperation in the areas of economy, defense, science technology and culture.
"Considering that the Korea-India partnership is a factor for peace and stability in Asia, Lee and Singh agreed to enhance bilateral relations to a Strategic Partnership," a joint statement issued following the summit said.
On the sidelines of the summit, the two governments signed memorandums of understanding on cooperation for the development of space technology, information technology and on the transfer of sentenced persons.
The accords pave the way for Korean conglomerates, including Hyundai Motor, Samsung and POSCO, to sharply increase their presence in India as well as in Southeast Asia.
Seoul also hopes closer ties with New Delhi will help strengthen President Lee's New Asia Initiative, under which he seeks to embrace more Asian countries through diplomatic and economic cooperation to represent their voices in the international arena.
Two-way trade between Korea and India grew 39 percent to $15.6 billion in 2008, with South Korea posting a surplus of $2.39 billion. The CEPA is expected to boost bilateral trade by as much as $3.3 billion annually.
Lee arrived here Sunday for a four-day state visit, his first overseas trip this year, at the invitation of India's President Pratibha Devisingh Patil. Following the summit, Lee met with India's political leaders, including Vice President Mohammad Hamid Ansari and ruling party leader Sonia Gandhi, to discuss ways to promote the Korea-India relationship.
In political and security areas, the two leaders agreed to hold regular high-level diplomatic and defense talks. Korea and India will explore the possibilities of military technology exchanges and joint ventures aimed at co-producing military equipment.
Both sides also shared the view that the CEPA will contribute to enhancing bilateral trade and investment, opening a new chapter for ties between Korea and India, which established diplomatic relations in 1973.
Lee and Singh set the goal of reaching $30 billion in bilateral trade and agreed to work together to strengthen cooperation in investment, small businesses, trade regulations and intellectual property protection.
The Indian government hoped Korea will increase investment in its infrastructure and manufacturing sectors.
In this context, both sides shared the need to expedite POSCO's $1.2 billion project to build a steel plant in the state of Orissa, the largest overseas investment by a Korean firm, and the planned construction of a Korean industrial complex in the state of Gujarat.
The two leaders also agreed to deepen partnership in the information technology sector by expanding mutual investment and personnel exchanges.
In particular, they welcomed the signing of an MOU for the state-run space technology institutes of the two nations to cooperate in peaceful uses of outer space.
To promote cultural exchange, Korea and India will designate next year as the Year of India and Year of Korea, respectively.
They also shared the view that nuclear energy can play an important role as a safe, sustainable and non-polluting source of energy, agreeing to facilitate bilateral civil nuclear cooperation. South Korea is now seeking to participate in India's project to build nuclear reactors.
Today, President Lee will become the first South Korean leader to observe a street parade marking Republic Day, the country's largest national celebration, as the Chief Guest.
At night, he will meet with Korean community leaders to deliver a speech on ways to boost Korea-India civilian exchanges, Cheong Wa Dae said.
President Lee will then head to the Swiss ski resort of Davos Wednesday to deliver an address at the World Economic Forum Thursday. He is scheduled to return home Saturday.
The Korea Times
