summary:
- Lee is visiting South Korea and India for the first time in eight years
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The goal is to double trade to $50 billion by 2030
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Focus on shipbuilding, artificial intelligence, finance and defense cooperation
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Supply chain risks lead to closer relationships
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Korea is seeking to obtain more naphtha from India
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Trade imbalance remains a major issue
South Korean President Lee Jae-myung is set to meet Indian Prime Minister Narendra Modi in New Delhi, aiming to significantly deepen economic ties as the two countries look to boost resilience to global supply chain disruptions.
This visit marks South Korea’s first presidential state visit to India in eight years, underscoring renewed efforts by Seoul to advance relations. Officials on both sides are targeting to nearly double bilateral trade to $50 billion by 2030, up from about $25.7 billion last year, as part of efforts to modernize the current Comprehensive Economic Partnership Agreement.
Lee framed the partnership as strategically important in an increasingly fragmented global economy, particularly given the ongoing turmoil associated with the Iran war. He stressed that cooperation between South Korea and India could expand significantly across key sectors, including shipbuilding, finance, artificial intelligence and defence.
The main focus is supply chain security. South Korea has already turned to India for help offsetting risks from tensions in the Middle East, including a recent request for increased supplies of naphtha, a key raw material for petrochemicals. India currently accounts for a modest share of South Korea’s imports, but officials see room to expand flows as part of a broader rebalancing of trade.
This relationship also reflects changing perceptions of India’s role in the global economy. Lee described India as evolving beyond a consumption-driven market into a critical node in global production and supply chains, making it an increasingly attractive partner for industrial cooperation.
However, structural challenges remain. South Korea runs a large trade surplus with India, a long-standing source of contention that the two sides seek to address through deeper cooperation and expanding imports. Analysts point out that sectors such as shipbuilding, which are in line with India’s employment priorities and South Korea’s industrial expertise, could provide a path to more balanced growth.
Li’s visit is also expected to include meetings with senior business leaders, strengthening the commercial dimension of the partnership. He is scheduled to travel to Vietnam as part of a broader regional engagement strategy.
This reflects a theme of structural supply chain realignment, as Asia increasingly looks inward to offset geopolitical risks. Integration between Korea and India could support regional trade flows, especially in energy inputs and industrial sectors. Although it is not a direct market driver, it reinforces the broader trend of diversification away from traditional routes, which has implications for commodities, shipping and long-term growth dynamics across Asia.
