South Korea and India have agreed to strengthen cooperation to maintain energy supply stability amid uncertainties due to the war in the Middle East.
Citing a Yonhap report, Monday, April 20, the deal was delivered by South Korean President Lee Jae Myung after a meeting with Indian Prime Minister Narendra Modi in New Delhi, Monday, April 20. In addition to energy, the two also discussed expanding trade and investment, as well as cooperation opportunities in the critical minerals sector, artificial intelligence (AI), finance, and shipyards.
"With the latest developments in the Middle East, we will continue to strengthen bilateral cooperation to ensure the supply of energy and key raw materials remains stable, including naphtha," Lee said.
Nafta is an important raw material for the petrochemical industry. South Korea imports most of the naphtha from the Middle East through the Strait of Hormuz, a route now affected by tensions between the United States and Iran.
Modi also said India would strengthen cooperation with South Korea in the field of important technologies and supply chains to promote the prosperity of both countries.
Lee said the two leaders also agreed to maintain close coordination on regional peace and global issues. Both of them believe that restoring peace and stability in the Middle East is important for world security and economy.
During the meeting, Lee also explained South Korea's efforts to build peace on the Korean Peninsula and expressed appreciation for the Indian government's consistent support.
In the economic field, South Korea and India agreed to accelerate negotiations to increase the Comprehensive Economic Partnership Agreement or CEPA. The target is for bilateral trade to increase from 25 billion US dollars to 50 billion US dollars by 2030.
Modi said negotiations on the CEPA upgrade would continue this year and be completed as soon as possible.
From the meeting, the two countries signed 15 cooperation documents to strengthen trade, investment, and collaboration in the shipbuilding and AI sectors. They also agreed to establish a ministerial-level industrial cooperation committee.
As reported by Yonhap, one of the agreements opens up opportunities for South Korean companies to participate in the development of the shipbuilding industry project in India. In addition, the two countries will build the Mumbai Korea Center, a Korean cultural center that is also prepared as a K-pop performance space and meeting with Bollywood.
Before the summit, Lee visited Raj Ghat, a monument to Mahatma Gandhi, and planted a tree with Modi at Hyderabad House.
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