66 new Korean companies entered India during pandemic year 2020, total Korean investment into India almost doubled in last four years

NEW DELHI: South Korea has revealed that as many as 66 new Korean companies entered India even during the pandemic-struck year 2020, and Korean investment totaled around US$396 million during this economic downturn period.

Also, Korean investment into India almost doubled in the last four years from US$ 1.39 billion in 2017 to US$ 2.69 billion for 4 years after till 2021.

Ambassador Chang Jae-bok, the Republic of Korea in India said Friday that both Korean and Indian economies were on the path of fast economic recovery with strong growth momentum.

“On the bilateral front, the trade and economic cooperation between our two countries have gained momentum. Even amidst the pandemic, 66 new Korean companies entered India and Korean investment totaled US$ 396 million during the year 2020,” the Ambassador said during his address during the 4^th India Korea Business Partnership Forum organized by the Confederation of Indian Industry (CII) and Korea International Trade Association (KITA).

According to an industry estimate, the total number of Korean companies in India was about 750 in 2019, and with the influx of more Korean companies, the number seems to have crossed the 800 mark.

The ambassador asserted that the bilateral economic cooperation and business partnership between Korea and India had grown rapidly over time and become mutually beneficial.

“Korean companies are looking at India as an attractive alternative manufacturing base. As you are all aware, in the last couple of decades China has been the most popular destination for Korean business and investment. From China, the Korean investment went west to south East Asian countries such as Vietnam and Indonesia. Now Korean companies are diversifying their investment decision further west to India which has emerged as the next economic frontier,” Ambassador Chang Jae-bok added.

On this occasion, Han-Koo Yeo Minister for Trade, Ministry of Trade, Industry and Energy (MOTIE), Republic of Korea said that as the fifth largest economy, India has continued to play the role of growth engine for the global economy even during the recent economic downturn.

“In 2020, India saw a 13% growth in FDI inflow amounting to a total of US$ 57 billion while global FDI volume plunged by 42 % year on year. In 2021, the Indian economy is forecasted to grow at 10% as well. Korean investment into India almost doubled in just four years from US$ 1.39 billion for the 4 year period in 2017 to US$ 2.69 billion for the 4 years after,” said Han-Koo Yeo.

The South Korean minister went on to suggest that both the countries should work on some of the key areas to forge further partnerships based on mutual trust and their respective strengths.

Related article: 인도와 한국은 2030년까지 500억 달러의 양국간 무역 목표를 달성하기 위해 협력해야 한다 India, Korea need to work together to achieve $50 billion bilateral trade target by 2030

He said that India could look forward to strengthening its Make in India initiatives, and Korea could help India just start its growth Engine in New markets. He said that the successful collaboration in electronics, automobile, steelmaking, and petrochemicals would provide additional momentum in other manufacturing sectors as well.

The bilateral trade between India and Korea hovers around US$ 21 billion currently. However, both nations are committed to taking the bilateral trade to US$ 50 billion by the year 2030 as was jointly announced by Indian PM Narendra Modi and Korean President Moon Jae-in in 2018.

Ambassador Chang Jae-bok said that since the 1990s, Korean companies firmed up their presence in India contributing significantly to India’s economic growth and development while also improving the quality of life of its people.

“What makes India more attractive is that it’s a democracy with which Korea has the highest level of mutual trust with no historical baggage and any conflict of interest. It has only commonalities to share,” he added.