India-South Korea Relations Explained

India-South Korea relations have grown from a modest, largely commercial link in the 1970s into one of the most dynamic partnerships in the Indo-Pacific. The two countries are separated by thousands of kilometres of sea and land, yet they have a surprisingly old shared history, which includes a legendary Indian princess who is said to have become a Korean queen, Buddhist pilgrims who travelled between the two lands and an Indian role in ending the Korean War. Today the Republic of Korea is a leading investor in India and an important technology partner.

Formal diplomatic ties were established in the early 1970s, and the relationship was transformed after 1991 as India opened its economy and Korea looked for new markets and manufacturing bases. Since 2015 the two countries have described their ties as a Special Strategic Partnership. This explainer covers the history, the trade agreement known as CEPA, industrial and technology cooperation, defence and shipbuilding, the link with India’s Act East policy and the cultural bonds that bind the two societies, together with the areas where progress has been slower.

Quick Facts

Ancient Links and the Legend of Queen Heo

The earliest links between the Indian subcontinent and the Korean peninsula came through Buddhism, which travelled from India across Central Asia and China to the Korean kingdoms in the fourth century CE. Korean monks and scholars have since regarded India as the holy land of the faith. Korean pilgrims such as Hyecho, who journeyed to India in the eighth century and wrote an account of the Buddhist kingdoms of the subcontinent, are among the best-known travellers in Asian history.

The Ayodhya princess

A famous legend recorded in the Korean chronicle Samguk Yusa tells of a princess from a land called Ayuta, which Korean and Indian tradition identify with Ayodhya, who sailed to the Gaya kingdom in the first century CE and married King Suro, becoming Queen Heo Hwang-ok. Millions of Koreans who bear the surname Kim of Gimhae or Heo trace their ancestry to the couple. Historians regard the story as a legend or at least as a symbolic memory of early contacts, but it is a living part of the cultural relationship. A memorial park to the queen exists in Ayodhya, and the Korean first lady took part in celebrations there in 2018.

Tagore and the Lamp of the East

In 1929 the poet Rabindranath Tagore wrote a short poem about Korea, popularly known as “The Lamp of the East”, in which he described the country as a lamp waiting to be lit again. The poem was written when Korea was under Japanese colonial rule, and it is learned by school students in Korea to this day. It remains one of the most frequently mentioned symbols of Indian regard for the Korean people.

India and the Korean War

India’s first real involvement with the peninsula in modern times followed the outbreak of the Korean War in 1950. India did not send combat troops, but it played an important diplomatic and humanitarian role. An Indian general, K.S. Thimayya, chaired the Neutral Nations Repatriation Commission in 1953, which dealt with the question of prisoners of war who did not wish to return to their home countries, while the Custodian Force of India, with thousands of Indian soldiers, supervised the handling of these prisoners after the armistice.

The 60th Parachute Field Ambulance

India also dispatched the 60th Parachute Field Ambulance, a medical unit that served with distinction in Korea, treating thousands of wounded soldiers and civilians and earning gallantry awards. The unit is still remembered in India’s military medical tradition and is acknowledged in Korea.

The difficult Cold War decades

Although India had helped to bring about the armistice, the following decades were not close. During the Cold War, India’s non-aligned policy and its relations with the Soviet Union and with North Korea left it with little contact with Seoul, while South Korea’s security alliance with the United States kept it in a different strategic camp. Trade was limited, and the two governments exchanged only consular representatives until the early 1970s. Full diplomatic relations followed in 1974, but the pace of contact remained slow until the end of the Cold War.

The Turning Point After 1991

The economic reforms of 1991 and India’s Look East policy changed this picture. Korean conglomerates, known as chaebols, were looking for large markets and production sites outside East Asia, and India’s population and liberalising economy attracted them. Prime Minister P.V. Narasimha Rao visited Seoul in 1993, and the first investments by major Korean firms followed during the same decade.

Milestones on the way

• 1996: Hyundai Motor established its India operations, with a manufacturing plant near Chennai that began production in the late 1990s and was among the first large Korean projects in the country.
• 1990s: Samsung and LG began producing electronics and household appliances in India, and Daewoo and other firms also invested.
• 2004: The two governments declared a long-term cooperative partnership for peace and prosperity.
• Mid-2000s: Defence cooperation arrangements were put in place, laying the basis for later dialogue and industry cooperation.
• 2010: A Strategic Partnership was declared during President Lee Myung-bak’s visit, when he was the chief guest at the Republic Day parade.

This sequence shows a clear progression from commercial interest to political trust, mirrored by an increase in the frequency of ministerial and summit-level visits.

The Special Strategic Partnership of 2015

In May 2015, during the Indian prime minister’s visit to Seoul, the two countries upgraded their relationship to a Special Strategic Partnership. The expression recognises that the partnership is not only about trade but also about security, technology, regional diplomacy and long-term cooperation. The upgraded framework includes regular dialogue between foreign and defence officials, as well as periodic summit-level meetings.

Key features

• Regular political dialogue, including leader-level meetings on the sidelines of global events such as the G20 and East Asia Summit.
• Defence and strategic cooperation, including shared interest in maritime security and the stability of the Indo-Pacific.
• A commitment to expand cooperation in science and technology, infrastructure, smart cities, and manufacturing.
• Cultural and people-to-people initiatives, including tourism, education and exchanges.

The 2018 visit

In July 2018 President Moon Jae-in visited India and jointly inaugurated, with the Indian prime minister, a large Samsung mobile phone manufacturing facility at Noida, which was widely reported as one of the biggest of its kind in the world. The visit also included an agreement to set a target of significantly higher bilateral trade and to promote cooperation between small and medium enterprises.

The CEPA Trade Agreement

The Comprehensive Economic Partnership Agreement, commonly known as CEPA, was signed in August 2009 and came into force on 1 January 2010. It was India’s first free trade arrangement of this kind with a major East Asian economy and is a central feature of India-South Korea relations. It reduces or eliminates tariffs on a wide range of goods, covers services and investment, and provides frameworks for cooperation in customs and dispute settlement.

Impact on trade

Bilateral trade rose significantly in the years after the agreement entered into force, and Korea became one of India’s principal trading partners in East Asia. India exports petroleum products, chemicals, iron ore and other minerals, marine products, textiles and engineering goods to Korea. Korea exports electronics components, steel, automotive parts, machinery, petrochemicals and electrical equipment to India. The balance of trade has generally favoured Korea.

The upgrade negotiations

• Both governments have been negotiating an upgrade of the agreement since the middle of the last decade, to deal with issues such as non-tariff barriers, rules of origin, services and digital trade.
• Indian industry has raised concerns about the size of the trade deficit and about access to Korean markets for agricultural and processed products.
• Korean companies have asked for greater regulatory predictability and lower tariffs on components.

These discussions are an example of a mature partnership dealing openly with differences, rather than a sign of conflict.

Korean Investment and Manufacturing in India

Korean firms are among the more visible foreign investors in India, especially in manufacturing. Their presence is concentrated in several states, each of which has encouraged Korean investment by setting up dedicated industrial areas and incentives.

Electronics

Samsung and LG are household names in India. Samsung runs a very large mobile phone factory at Noida in Uttar Pradesh, along with other manufacturing and research sites, and LG has plants for appliances and electronics in locations such as Greater Noida and Pune. Both companies also run research centres in India and export from Indian plants to other markets.

Automobiles

Hyundai Motor India, based in Tamil Nadu, is one of the largest car makers in the country and a major exporter of vehicles from India. Kia, which started production in 2019 at a plant in Anantapur in Andhra Pradesh, has since become a significant player in the market, particularly in the SUV segment. Korean suppliers of components have followed these manufacturers and have established clusters around their plants.

Steel and heavy industry

• POSCO signed an agreement in 2005 for a large integrated steel plant in Odisha, a project that faced years of delay over land acquisition, environmental clearances and local concerns, and was eventually abandoned. It remains a frequently discussed example of the importance of land and regulatory processes in attracting investment.
• Korean firms such as Hyundai Heavy Industries, Doosan and Samsung Engineering have participated in power, industrial and infrastructure projects.
• Korean chemical and battery makers have shown interest in India’s growing electric vehicle and energy storage sector.

Technology, Innovation and Shipbuilding

Cooperation in technology and industry is the area in which both governments see the greatest potential. Korea is a world leader in semiconductors, display panels, batteries, shipbuilding and telecommunications, while India has a large pool of engineers, software skills and a rapidly growing digital economy. This complementarity is a major reason why the partnership is viewed as a strategic one.

Digital and emerging technology

• Fifth-generation telecommunications, where Korean firms were among the early movers and have supplied equipment and expertise.
• Semiconductors and electronics supply chains, as India seeks to develop domestic manufacturing and Korea seeks diversification of its production sites.
• Artificial intelligence, the Internet of Things and start-ups, with joint centres and exchanges between innovation ecosystems.
• Electric vehicles and batteries, where the two sides discuss supply chains and investment.

Shipbuilding and maritime industry

Korea is among the world’s largest shipbuilding nations, and India has a long coastline, a programme to develop its ports and a policy objective of expanding its shipbuilding capacity and merchant fleet. Korean yards have signed memoranda and cooperation agreements with Indian shipyards on technology, design and training for commercial vessels and naval support ships. The two sides have also discussed collaboration on port development, offshore engineering and green shipping technologies. These plans are in different stages of implementation, and large projects depend on commercial terms and Indian procurement rules.

Defence and Security Cooperation

Defence cooperation has expanded steadily since the mid-2000s and the 2010 Strategic Partnership. The two defence ministries hold regular dialogues, and each side has defence attaches in the other’s capital. The armed services have staff talks, training exchanges and visits by ships.

The K9 Vajra howitzer

The most visible defence project is the K9 Vajra-T self-propelled howitzer. In 2017 the Indian Army ordered one hundred of these guns from a partnership between the Korean firm Hanwha and the Indian company Larsen and Toubro, under a programme in which most of the guns were built in India at a facility near Surat in Gujarat. The deal was widely described as an example of defence industry cooperation and of the Make in India policy, because it combined Korean design with Indian production.

Navies and maritime security

• The two navies exchange port calls and take part in passage exercises, and cooperate on maritime security and anti-piracy issues.
• Both countries are keen on freedom of navigation and the rule of law at sea, particularly in the Indo-Pacific.
• Both have an interest in the safety of energy shipping routes from the Gulf to East Asia, which pass through the Indian Ocean.

The two sides have also discussed defence industry cooperation in areas such as shipbuilding, aerospace and electronics, and joint production and exports to third countries. On the question of North Korea, India supports a peaceful resolution and has said that it favours the denuclearisation of the peninsula, while maintaining limited diplomatic contacts with Pyongyang.

Act East and the New Southern Policy

India’s Act East policy, which upgraded the Look East policy in 2014, aims to strengthen India’s economic and strategic links with Southeast and East Asia. South Korea’s New Southern Policy, announced in 2017 under President Moon Jae-in, sought to widen Korea’s partnerships with ASEAN and India, so as to reduce its dependence on any single major economy. The overlap between these two policies was explicitly acknowledged in the 2018 summit, and both have become a framework for cooperation in the region.

Regional and global platforms

• Both countries are part of the East Asia Summit and the G20, and both were engaged in the Regional Comprehensive Economic Partnership negotiations, although India chose not to join the final agreement.
• They both participate in the Indo-Pacific Economic Framework for Prosperity, which seeks cooperation on supply chains and clean energy.
• Korea has announced its own Indo-Pacific strategy, which includes India as a key partner, and both countries hold similar views on a free, open and inclusive regional order.
• Cooperation in the United Nations, on climate change and on development finance is also regular.

The Indian Northeast is a focus of some of the shared interest, because the Act East policy places it as a gateway to Southeast Asia, and Korea has offered to partner in connectivity and infrastructure projects there.

Culture, Education and People-to-People Ties

Cultural contact is steadily growing. Korean pop culture, known as Hallyu or the Korean Wave, has an increasingly large following among young Indians, especially in the north-eastern states, where Korean dramas, music and food are popular. Korean restaurants and language institutes have opened in major cities, and the Korean language is now taught at several Indian universities. In the other direction, yoga, Bollywood films, Indian cuisine and Buddhist heritage sites attract Koreans, many of whom visit Bodh Gaya, Sarnath and other pilgrimage places.

Institutions and exchanges

• The Korean Cultural Centre in New Delhi and the Indian Cultural Centre in Seoul organise festivals, classes and exhibitions.
• Universities in Seoul and other Korean cities teach Hindi and Indian studies, while several Indian universities teach Korean.
• Scholarships, student exchanges and research collaborations between universities, including joint work in science and technology, have been expanded.
• Indian professionals, particularly in information technology and engineering, work in Korea, and a small but vibrant Indian community lives there.

The cultural dimension also includes the legend of Queen Heo, which both governments mention in official statements, and the shared memory of Tagore’s poem, which is widely recognised in Korea.

Challenges and Outlook

Despite its progress, the partnership has some persistent challenges that officials and analysts mention regularly.

Persistent issues

• The trade deficit with Korea has been a recurring concern for India, and Indian exporters have asked for better market access.
• Regulatory complexity, taxation questions, land acquisition and infrastructure bottlenecks have been cited by some Korean firms as obstacles, as the example of the Odisha steel project showed.
• Geographic distance and limited direct connectivity restrict tourism and business travel, although direct flights and visa facilitation have improved.
• Strategic priorities differ in some respects: Korea has to manage relations with its immediate neighbours, including North Korea, China and Japan, while India focuses on its land borders and the Indian Ocean.

Prospects

Both governments are interested in expanding cooperation in semiconductors, electric vehicles, batteries, shipbuilding, defence production, hydrogen and renewable energy, space and artificial intelligence. If the upgrade of CEPA is concluded and the supply chain partnerships mature, the economic relationship may become more balanced. The shared interest in a stable Indo-Pacific provides a political context for this cooperation.

Conclusion

India-South Korea relations began with a legend and a poem and have become a partnership of factories, ships, trade rules and strategic dialogue. The route from the first diplomatic ties of the 1970s to the Special Strategic Partnership of 2015 reflects India’s economic opening, Korea’s search for new partners and a shared interest in the Indo-Pacific. While issues such as trade balance and regulatory processes remain, the direction of the relationship is steady and the potential for cooperation in technology and manufacturing is considerable.

Frequently Asked Questions

When did India and South Korea establish diplomatic relations?

Consular relations were established in 1973, and full diplomatic relations followed in 1974. The relationship expanded greatly after India’s economic reforms of 1991 and its Look East policy.

What is the India-South Korea Special Strategic Partnership?

It is the framework adopted in May 2015, during the Indian prime minister’s visit to Seoul, which elevated an earlier Strategic Partnership of 2010. It covers regular summit and ministerial dialogue, defence and security, trade and investment, technology and cultural cooperation.

What is the India-Korea CEPA?

The Comprehensive Economic Partnership Agreement was signed in 2009 and came into force on 1 January 2010. It reduces tariffs on many goods and covers services and investment, and the two countries have been negotiating an upgrade to address issues such as non-tariff barriers and trade imbalance.

Which Korean companies are active in India?

Prominent Korean firms in India include Hyundai Motor and Kia in the automobile sector, Samsung and LG in electronics and appliances, and Hanwha, which partners with Larsen and Toubro in defence manufacturing. Other Korean companies are active in steel, chemicals, construction, shipbuilding and batteries.

What is the connection between Queen Heo Hwang-ok and India?

According to a Korean chronicle, a princess from Ayuta, identified in tradition with Ayodhya, travelled to the Gaya kingdom in 48 CE and married King Suro, becoming Queen Heo Hwang-ok. The story is regarded as a legend, but it is an important symbol of ancient ties and is commemorated with a memorial in Ayodhya.

How are the Act East policy and Korea’s New Southern Policy connected?

India’s Act East policy seeks to deepen engagement with Southeast and East Asia, while Korea’s New Southern Policy, announced in 2017, aimed to broaden Korean ties with ASEAN and India. The two policies overlap, and both governments have acknowledged their complementarity as a basis for cooperation in trade, infrastructure and regional diplomacy.