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South Korean President Lee Jae Myung and Indian Prime Minister Narendra Modi agreed on Monday to cooperate on stabilizing energy supply chains as the two countries navigate uncertainties stemming from the ongoing Middle East conflict. The agreement came during Lee's three-day state visit to India, the first by a South Korean leader in eight years, according to Yonhap News Agency.

Speaking at a joint press announcement in New Delhi, Lee said the two leaders focused on expanding trade and investment and exploring new opportunities in critical minerals, energy, artificial intelligence, finance, and shipbuilding. "In light of recent developments in the Middle East, we will continue to strengthen bilateral cooperation to ensure a stable supply of energy resources and key raw materials, including naphtha," Lee said, as reported by Yonhap.

Naphtha, a key feedstock for the petrochemical industry, is primarily imported by South Korea from the Middle East via the Strait of Hormuz, which has been effectively closed amid heightened tensions between the United States and Iran. Modi echoed Lee's remarks, saying India would strengthen cooperation in key technologies and supply chains with South Korea to promote shared prosperity, according to Yonhap.

Coverage Comparison

Coverage of the summit from Deutsche Welle focused on economic cooperation and trade targets, highlighting the goal to double bilateral trade to $50 billion by 2030 and the existing trade imbalance between the two nations. The South China Morning Post emphasized the geopolitical dimensions, particularly China's potential sensitivity to India–South Korea defense cooperation, given Beijing's border dispute with New Delhi in the Himalayas. Yonhap News Agency, in two separate reports, provided the most detailed account of the summit's outcomes, including specifics on the Comprehensive Economic Partnership Agreement (CEPA) upgrade and the establishment of new institutional mechanisms such as a 'Mumbai Korea Center' and a 'Korea desk' in India.

Key Claims

  • Energy supply chain cooperation: Both leaders agreed to strengthen bilateral cooperation to ensure a stable supply of energy resources and key raw materials, including naphtha, according to multiple reports. India supplied about 8% of South Korea's naphtha imports last year.
  • Trade expansion goal: Modi and Lee set a target to double bilateral trade to $50 billion by 2030. Currently, South Korea exports significantly more to India than it imports; South Korea exported $19.2 billion worth of goods and services to India last year and imported $6.4 billion, leaving a $12.8 billion surplus, according to data from the Korea International Trade Association as cited by Deutsche Welle.
  • CEPA upgrade: The two countries agreed to expedite negotiations to upgrade their Comprehensive Economic Partnership Agreement, aiming to reflect new trade norms and better respond to evolving conditions in areas such as supply chains and the green economy.
  • Defense cooperation: Lee expressed South Korea's full backing for India's 'Atmanirbhar Bharat' (self-reliant India) policy and hoped to support the production and operation of Indian defense equipment. He cited the K9 Thunder howitzer as an example of existing cooperation; India operates about 100 K9 Vajra-T 155mm self-propelled howitzer units and plans to acquire 100 more, as noted by both the South China Morning Post and Yonhap.
  • New institutional initiatives: The leaders agreed to establish a 'Mumbai Korea Center' to serve as a K-pop performance venue and a hub for Korean culture, and India will set up a 'Korea desk' to act as a control tower for bilateral economic cooperation, per Yonhap.

Perspectives

South Korean Government Perspective: President Lee emphasized the importance of diversifying energy supply sources and deepening economic ties, calling the current level of cooperation "still very low" and expressing a desire to "make the relationship completely different from what it is now," according to Deutsche Welle.

Indian Government Perspective: Prime Minister Modi stressed strategic and economic objectives, highlighting the shared outlook on the Indo-Pacific and the mutual goal of doubling trade. He also emphasized cooperation in key technologies and supply chains.

Analyst Perspective: Commentators cited by the South China Morning Post noted that China would likely view India's defense industry cooperation with South Korea as "inevitably sensitive" given the ongoing border dispute between Beijing and New Delhi in the Himalayas.