Arch rivals Japan, South Korea bury hatchet in India, agree to collaborate in business

NEW DELHI: In an unprecedented but positive development, the apex Japanese and Korean trade promotion agencies have joined hands to explore the possibilities of working together in India. For this a joint survey has been launched for the first time ever in India to find out the industries or sectors in which Japanese and Korean companies can collaborate. For this, the India-based Japanese and Korean companies have been asked to share the area they would be interested for collaboration with each other. These companies have also been asked to share their previous experience of dealing with each other, or government agencies, if any.   

A decision to this effect was taken after a series of meetings the Japan’s apex trade promotion body JETRO Japan Trade Promotion Organization (JETRO) and Korea’s Korea Trade-Investment Promotion Agency held during the last year in New Delhi. The companies have also been requested to share their suggestions on improving the ease of doing business as they faced many problems related to infrastructure, customs clearance, taxation, labor, etc.

Over 1400 Japanese and 750 Korean companies are operational in India. However, the bilateral trade between India and South Korea is higher than India-Japan bilateral trade despite the former entered India late comparatively. Trade between India and Korea has crossed USD 30 billion while it’s under USD 25 billion between India and Japan. Both the countries have been competing hard to take maximum share of India’s booking economy and rising business potential. Owing to their historical differences, Japanese and Korean companies shy away from doing business with each other.

However, the year 2024 is all set to witness the sea-change and melting of ice in their business and trade relations as both sides have decided to collaborate with each other and find synergy than competing as arch rivals.

In a joint survey lunched recently, JETRO and KOTRA have approached Japanese and Korean companies respectively through a survey asking them to participate and share information as well as their intent to work with each other. According to the senior functionaries in the know, the findings of the joint survey would be made public after thorough processing of the collected information.

There have been a very few and select instances when Japanese and Korean companies collaborate and conduct joint businesses. Therefore, the joint survey has asked such companies to their share their experience of dealing with each other or with the respective government agencies of each other countries.

Japan is the 5th largest foreign investor in India with USD 40.84 billion investment between the year 2000 and September 2023 while Korea ranks 13th on this front with USD 5,71 billion during the same period.