South Korea and India Sign 20 MOUs Across Steel, Shipbuilding, and Energy Sectors

South Korea and India Sign 20 MOUs Across Steel, Shipbuilding, and Energy Sectors

SEOUL — South Korea and India have signed 20 memorandums of understanding (MOUs) to deepen cooperation in sectors including steel, shipbuilding, energy, and technology, according to South Korea's Ministry of Trade, Industry and Resources. The agreements were finalized during a bilateral business forum held on the sidelines of a summit between South Korean President Lee Jae Myung and Indian Prime Minister Narendra Modi in New Delhi on Monday.

The forum drew about 250 Korean business leaders and 350 Indian participants, including top executives from Samsung Electronics, Hyundai Motor Group, LG Group, POSCO Group, and HD Hyundai on the Korean side, and representatives from the Federation of Indian Chambers of Commerce & Industry, Sanmar Group, Essar Group, and JSW Steel on the Indian side.

Shipbuilding Partnership

One of the key agreements involves HD Hyundai Co., South Korea's leading shipbuilding conglomerate, which signed an MOU with India's NSHIP TN (National Shipbuilding & Heavy Industries Park) Tamil Nadu and Sagarmala Finance Corporation Ltd. (SMFCL) to establish a joint venture shipbuilding company in India. NSHIP TN is a special-purpose company created by Indian port authorities, while SMFCL supports India's Sagarmala port infrastructure development initiative.

Under the MOU, HD Hyundai will take the role of largest shareholder and oversee overall operations, with the goal of building a digital-focused shipyard. The company also plans to establish a shipbuilding training center to foster local talent and support the entry of South Korean equipment suppliers into the Indian market, according to HD Hyundai.

An HD Hyundai official said the agreement marks the transition of bilateral shipbuilding cooperation into the business execution phase, adding that it is expected to help secure new orders and create opportunities for Korean partners to expand overseas. The official also noted that the Indian government intends to place initial shipbuilding orders with HD Hyundai's South Korean shipyards before the joint shipyard becomes operational and will dispatch local workers for hands-on experience.

Electric Three-Wheeler Collaboration

Hyundai Motor Co. announced it has signed an agreement with TVS Motor Company Ltd. of India to collaborate on developing an electric three-wheeler tailored for the Indian market. Under the joint development agreement, Hyundai Motor will lead the design and joint development, leveraging its R&D capabilities and human-centric design approach, while TVS Motor will co-develop the product using its EV platform and expertise in three-wheeler engineering, as well as its knowledge of the local market.

The partnership follows the unveiling of an electric three-wheeler concept at the Bharat Mobility Global Expo 2025 and marks a step toward commercializing customized mobility solutions for Indian consumers, according to Hyundai Motor. The vehicle will be designed to address India's unique mobility challenges, including road conditions and urban infrastructure, while offering sustainable transportation solutions.

Ko Joong-sun, senior vice president of corporate strategy and planning at Hyundai Motor, said, "Hyundai Motor has long explored ways to contribute to improving India's transportation environment as a key market, and our collaboration with TVS Motor is a strategic decision rooted in that effort."

Sharad Mishra, president of group strategy at TVS Motor, added, "The collaboration reinforces our commitment to scalable, sustainable last-mile mobility while setting new benchmarks in technology, quality, customer experience and a legacy of trust."

Steel and Energy Deals

In the steel sector, POSCO Holdings and India's JSW Group agreed to establish a joint venture for investment in an Indian steel mill, according to the ministry's announcement. Further details of the investment were not disclosed.

In energy, GS Engineering & Construction Corp. signed an MOU with India's Arie Energy for the repowering of an old wind power generation plant in India. Additionally, South Korean IT giant Naver Corp. decided to partner with Tata Consultancy Services for cooperation in artificial intelligence and cloud services businesses.

Government and Business Response

The MOUs were signed during a period of heightened diplomacy between the two nations. The summit between President Lee and Prime Minister Modi, held in New Delhi, provided the backdrop for the business forum. The ministry said it also held a separate business partnership event for Korean and Indian companies in New Delhi on Tuesday, where export-related discussions continued.

Industry observers note that the agreements reflect a broader push by both governments to strengthen economic ties, particularly in high-tech manufacturing, infrastructure, and sustainable mobility. The shipbuilding and electric vehicle collaborations are seen as strategically significant, as India seeks to expand its domestic manufacturing capabilities and South Korea looks to diversify its overseas markets.

Perspectives

The agreements have been met with cautious optimism in both countries. South Korean officials view the deals as a way to secure new growth opportunities in India's rapidly expanding economy. Indian officials, for their part, emphasize the potential for technology transfer and job creation. However, some analysts point out that the implementation of such large-scale projects often faces challenges related to regulatory hurdles, local content requirements, and infrastructure readiness.

The full list of the 20 MOUs was not made publicly available, and the specific terms of each agreement remain confidential. Further details are expected to emerge as the projects move from signing to execution.