Martial Arts: "Korea-India CEPA Renegotiation Needed... Certification and Origin Proof Complex"

Vice Chairman Jeong Manki Speaks at the '2023 Korea-India Business Forum'

Jung Manki, Vice Chairman of the Korea International Trade Association (KITA), emphasized the need to promptly conclude the renegotiation of the Comprehensive Economic Partnership Agreement (CEPA) between Korea and India.

On the 7th (local time), KITA co-hosted the 'Korea-India Business Forum' with the Confederation of Indian Industries (CII) in New Delhi, India. The event was held to commemorate the 50th anniversary of diplomatic relations between the two countries. About 200 businesspeople and government officials from both countries attended, including Jung Manki, Vice Chairman of KITA; Sanjiv Puri, Chairman of CII; Jang Jaebok, Korean Ambassador to India; and Rajesh Kumar Singh, Deputy Secretary of the Indian Department for Promotion of Industry and Internal Trade (DPIIT).

Vice Chairman Jung stated that the trade volume between the two countries has grown from $14 million (approximately 1.84 billion KRW) at the time of establishing diplomatic relations to $27.8 billion (approximately 36.5 trillion KRW) last year. He noted that future industries such as defense, information technology (IT), biotechnology, and green transition industries are emerging as promising areas of cooperation between the two countries, and stressed the need to increase exchanges between companies.

Korea International Trade Association Vice Chairman Jeong Manki delivering a greeting at the '2023 Korea-India Business Forum' jointly hosted by the Korea International Trade Association and the Confederation of Indian Industry in New Delhi, India, on the 7th.
[Photo by Korea International Trade Association]

Vice Chairman Jung emphasized the need to improve the CEPA, which came into effect in 2010. He said, "I hope the renegotiation of CEPA will be concluded promptly," adding, "According to a KITA survey, Korean companies face difficulties such as ambiguity in the scope of CEPA application, complexity in the certification acquisition process, and challenges in proving the origin when trading with India." He further stated, "If the Indian side takes steps to resolve these difficulties, cooperation between Korean companies and India will expand further."

Chairman Puri said that India has invested about $2.6 billion (approximately 3.4 trillion KRW) over two years in 14 major manufacturing sectors. He mentioned that India plans to spend $1.9 trillion (approximately 2,492 trillion KRW) by 2025, aiming to build infrastructure and attract investment. He added, "While cooperation between the two countries has focused on electronics, petrochemicals, and automobiles, it will expand to startups, energy, pharmaceuticals, and other sectors in the future."

Amit Kumar, Indian Ambassador to Korea, expressed in a video message, "India is rapidly improving its business environment through regulatory liberalization and structural innovation, and we hope to strengthen cooperation with Korean companies." Ambassador Jang Jaebok said, "Future industries such as green hydrogen and electric vehicles also hold promising prospects for cooperation between the two countries."

The scene of the '2023 Korea-India Business Forum'.
[Photo by Muhyup]

Deputy Secretary Singh stated, "We will address issues such as lack of policy information on taxation and certification for Korean companies, complicated certification acquisition procedures, and delays in obtaining certifications, and will actively pursue the upgrade negotiations of the Korea-India CEPA starting six months after the completion of free trade agreement (FTA) related work with Australia, the United Arab Emirates (UAE), and the European Union (EU)."

KITA reported that a survey conducted from the 24th to the 29th of last month among 305 companies wishing to enter the Indian market revealed difficulties such as finding business partners (60.5%), lack of market information (53.8%), customs clearance issues (26.1%), and difficulties in utilizing the Korea-India CEPA (16.7%).

KITA also informed that it has conveyed the difficulties faced by Korean companies to the Indian Department for Promotion of Industry and Internal Trade. A DPIIT official stated, "The Indian government plans to carefully review the difficulties and suggestions of Korean companies and seek improvement measures."

This content was produced with the assistance of AI translation services.