Korea and India Adopt Joint Statement on Naphtha Supply Chain Cooperation

Establishment of Industrial Cooperation Committee, Resumption of CEPA Talks
Expanding Cooperation to Steel and Carbon Reduction

Indian Prime Minister Narendra Modi is offering a seat during the expanded summit meeting with President Lee Jae-myung at the state guest house in New Delhi on the 20th (local time). Photo by Yonhap News

The Ministry of Trade, Industry and Energy adopted a joint statement on energy resource security cooperation with the Indian government on the occasion of President Lee Jaemyung's state visit to India, and signed four memorandums of understanding (MOUs) for cooperation in the fields of energy, industry, and trade.

According to the Ministry on the 20th, the two countries agreed to establish a stable supply chain for key energy resources such as naphtha. They also decided to strengthen cooperation in areas including the establishment of an Industrial Cooperation Committee, the resumption of negotiations on the Comprehensive Economic Partnership Agreement (CEPA), steel cooperation, and responses to climate change.

First, the two countries adopted the "Korea-India Joint Statement on Energy Resource Security Cooperation" and agreed to build a stable supply chain throughout the resource value chain, including petroleum products such as naphtha. This marks the first bilateral resource cooperation agreement concluded by the Korean government since the Middle East war. India is Korea’s fifth-largest importer of naphtha, with 2.21 million tons imported last year.

Kim Jeonggwan, Minister of Trade, Industry and Energy, and Piyush Goyal, Minister of Commerce and Industry of India, also signed an MOU to establish the "Korea-India Industrial Cooperation Committee." This consultative body will hold regular ministerial-level talks focusing on four key areas: trade and investment, industrial cooperation, strategic resources, and clean energy. It is expected to help resolve issues such as delays in permits and unpaid incentives for Korean companies operating in India.

In the trade sector, Han-Koo Yeo, Korea’s Trade Negotiation Minister, and Minister Piyush Goyal signed a joint declaration to accelerate the negotiations for the improvement of the Korea-India CEPA. The two countries agreed to resume the 12th round of negotiations in May and to regularize future talks. They also plan to expand discussions on new trade norms, including digital trade and supply chain cooperation.

Cooperation in the steel sector will also be strengthened. The Ministry of Trade, Industry and Energy and the Ministry of Steel of India signed a "Korea-India Steel Cooperation MOU" and agreed to establish a public-private steel dialogue channel. In particular, with POSCO Holdings’ investment in an integrated steel mill in India, the foundation for cooperation between the two countries is expected to expand further.

Regarding the response to climate change, a "Paris Agreement Article 6.2 Cooperation Memorandum of Cooperation (MoC)" was signed. This institutionalizes the transfer of greenhouse gas reduction achievements by Korean companies operating in India back to Korea. After Japan, India is the second country with which Korea has established such a cooperation framework.

The Ministry stated, "We will strengthen support so that this cooperation between the two countries can lead to tangible business outcomes," adding, "We plan to continue expanding cooperation centered on strategic areas such as resources and advanced industries."

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