DELHI — Kyunghoon Kim, Head of the India & South Asia Team at the Korea Institute for International Economic Policy, has emphasised the need to upgrade the Comprehensive Economic Partnership Agreement (CEPA) between India and South Korea to unlock the full potential of bilateral trade.
Speaking in Delhi, Kim noted that trade between India and South Korea has not grown as strongly as expected since the CEPA came into force, describing the expansion of exports and overall trade as relatively muted. He suggested that closer commercial engagement and stronger business ties are essential to drive automatic and sustained growth in trade volumes.
He highlighted that an upgrade of the CEPA should go beyond traditional market liberalisation, proposing the inclusion of new and emerging areas such as digital trade, green partnerships, development cooperation, and supply chain resilience. According to him, integrating these elements would help modernise the agreement and create a more dynamic framework for economic collaboration, ultimately boosting trade performance.
Kim also pointed out that the presence of Korean small and medium enterprises (SMEs) in India remains limited compared to other countries like Vietnam, where South Korean businesses have a stronger footprint. He suggested that improving the business environment in India is key to attracting more Korean investment.
To address this, he recommended providing better access to information, reducing regulatory complexities, and offering targeted support to mitigate risks faced by Korean SMEs. He also proposed the establishment of Korea-specific industrial parks in India, which could serve as dedicated hubs to encourage investment and facilitate smoother business operations.
Another major concern highlighted by Kim was the trade imbalance between the two countries, with South Korea exporting more to India than it imports. He noted that this trade deficit from India’s perspective has become a challenge in negotiations for upgrading the CEPA.
To overcome this issue, he stressed the importance of increasing South Korea’s imports from India, suggesting that both countries should conduct detailed studies to identify sectors and products where India can expand its export footprint.
Kim concluded that a comprehensive and forward-looking approach to upgrading the CEPA could significantly enhance economic ties, strengthen supply chains, and create new opportunities for businesses in both countries.
His remarks underline the need for strategic reforms and deeper cooperation to revitalise India–South Korea trade relations, making them more balanced, diversified, and future-ready.
