India a land of endless possibilities and opportunities: South Korean Ambassador Chang Jae-bok

NEW DELHI: While narrating India as an emerging economic powerhouse Ambassador of South Korea to India Chang Jae-bok, has said that India is a land of endless possibilities and opportunities. “The will of the Indian government and people to achieve economic development is also very strong. This is also the reason why compatriots are doing business in India in spite of various difficult circumstances, and our companies are also increasing their investment,” South Korean Ambassador said while addressing the Korean community on the occasion of 77th anniversary of National Liberation Day ceremony on August 15.

Both South Korea and India celebrate their independence day on the same day on August 15 as both countries had achieved freedom from Japan and Britain in 1945 and 1947 respectively.

[Korea-India Bilateral Trade in 2022]                                                               (Amount in US$ millions, YoY %) 

Source: Korea International Trade Association

“This is also the reason why Korean nationals are doing business in India in spite of various difficult circumstances, and our companies are also increasing their investment. The Korean-Indian community, which is dominated by the people in this position, is a solid foundation for the development of bilateral relations between Korea and India. The embassy will continue to listen to the opinions of the Korean community and actively communicate, while doing its best to provide useful services and convenience to the Korean people, Koreans, and Korean companies that have entered India,” said the Ambassador adding that India, where you have settled, is a country that shares universal values ​​such as democracy, human rights, freedom, and peace with the Republic of Korea.

[Korea-India Bilateral Trade 2015-2022]                                                             (Amount in US$ 100millions, YoY %)

Source: Korea International Trade Association

Ambassador Chang was invited to the 76th Independence Day celebration of India at Red Fort.

Korea and India have a strong economic partnership that is rapidly expanding. Despite of the slowing global economic growth due to the impact of war in Ukraine, surging inflationary pressure and subsequent interest rate hikes, the bilateral trade volume surged sharply.

According to data from Korea’s Ministry of Trade, Industry, and Energy (MOTIE), bilateral trade in the first half of 2022 reached $14.25 billion. It was the largest trade volume between the two countries on half-yearly basis, representing a 30% increase over the previous year’s total of $10.97 billion.

Korea’s exports to India increased by 21.6 percent to $9.0 billion, while imports increased by 47.2 percent to $5.2 billion, resulting in a $3.8 billion trade surplus. This increase in exports and imports was aided by a rebound in economic activity and industrial output during January to June.

Korea’s exports to India from January to June crossed $9.0 billion which was the largest export volume between the two countries on half-yearly basis. Exports continued positive double-digit growth in each month excluding February.

It reached $1.47 billion in January, an increase of 15.3% year-on-year, 12.9% to $1.51 billion in March, and 14% to $1.54 billion in April. In particular, exports in May reached $1.70 billion, an increase of 71% year-on-year, touching the second best monthly export performance, following by 2.03 billion in August 2017. Exports of 10 major items showed a high export growth rate with more than double digits.

Korea’s biggest exports to India were semiconductors, iron ore, communication devices, which have seen a recovery in demand in India. In particular, exports of semiconductors and communication devices increased dramatically. The exports of semiconductor rose 95% YoY as increasing the demand and sales of essential semiconductor items such as electronic products and IT equipment increased and emerged as the largest export item.

Korea’s imports from India in the first half of 2022 set a new record of $5.2 billion, making it country’s largest annual imports from India. As rising oil prices push up raw material prices, imports from India surged 47% in first 6 months of the year from a year before to $5.2 billion, exceeding $5 billion for the first time. Some of major import items had more than doubled; petroleum products increased by 127.8%, vegetable substances 142%, ferroalloy 104%, and steel products 104%.

Due to the surging prices of global energy and raw material, Korea’s trade surplus reduced to $3.75 billion in the first half of 2022. The trade imbalance between two countries has been decreasing since 2018 which was $9.8 billion.

Korea-India Investment

Korea’s foreign direct investment to India recorded $122 million during first three months in 2022, according to data from the Export-Import Bank of Korea. Korea’s investment was amounted to $352 million in 2021, a decrease of 40% from last year. However, investment in the 1^st quarter (January to march) increased by 27% from $96 million in the same period last year to $122 million as India has strong domestic economic recovery after the Covid-19 pandemic.

 [Korea’s FDI to India 2013-2022]

                                                                   (Amount in US$ Millions)

Source: Korea EXIM Bank (*2022.1~2022.3)

India’s investment in Korea reached $2.02 million in 2021, a 41% increase from $1.43 million in 2020. However, the first half of 2022 (January-June) was reduced to $6.23 million. Indian investment in Korea only had a temporary surge in 2013 and 2019 due to Mahindra and Mahindra’s investment in Ssangyong Motor.

[India’s FDI to Korea 2013-2022]                                                                     (Amount in US$ Millions)

Source: Ministry of Trade, Industry and Energy, Korea(*2022.1~2022.6)