Korea and India Resume CEPA Improvement Talks, Sign 15 Documents Covering Ports, Steel, and Finance

On the occasion of their summit on the 20th, President Lee Jae-myung and Indian Prime Minister Narendra Modi agreed to resume negotiations on improving the Comprehensive Economic Partnership Agreement (CEPA) between the two countries and signed 15 cooperation documents, including Memorandums of Understanding (MOUs) that encompass the port, industrial, digital, cultural, and financial sectors. The focus is on strengthening the institutional foundation for expanding trade and investment, while also broadening cooperation to include advanced industries and human exchanges.

President Lee Jae-myung and Indian Prime Minister Narendra Modi are entering the expanded summit held at the state guesthouse in New Delhi on the 20th (local time). Photo by Yonhap News

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On this day, six documents were exchanged in the presence of both leaders. The key outcome is the joint declaration on resuming negotiations to improve the Korea-India CEPA. Both countries will hold the 12th round of negotiations in May this year and will regularize the negotiation cycle with the goal of reaching an agreement by the first half of 2027. The Office of the President explained that this declaration will improve export conditions and local market entry for Korean companies and create new opportunities for expanding trade cooperation.

The two countries also signed an MOU to establish a ministerial-level Industrial Cooperation Committee, which will include four subcommittees covering trade and investment, industrial cooperation, resources, and clean energy. As the first ministerial-level economic cooperation platform between Korea and India, it is expected to serve as a channel for identifying joint projects in fields such as shipbuilding, nuclear power, and key minerals, and for deepening discussions on trade and investment issues.

An MOU on port cooperation was also signed. The two countries agreed to cooperate on port development investment and participation support, sharing technology and experience, exchanging experts, and conducting joint research. The government explained that a comprehensive cooperation system has been established, encompassing everything from port infrastructure development to human exchanges.

Cooperation in advanced industries was also highlighted. Through the Digital Bridge Framework, the two countries agreed to promote policy sharing, joint research and development (R&D), and expanded private sector exchanges across digital technologies such as artificial intelligence (AI), semiconductors, and quantum computing. The government expressed hope that combining Korea's strengths in hardware and AI technologies with India's base of software expertise and skilled workforce would enable the two countries to jointly lead the global digital economy.

President Lee Jae-myung and Indian Prime Minister Narendra Modi hold a joint press conference at the VIP Guesthouse in New Delhi on the 20th (local time). Photo by Yonhap News

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Cultural and content cooperation will also be strengthened. Through an MOU on cooperation in the cultural and creative industries, the two countries agreed to promote policy exchanges, joint projects for talent development, and the establishment of cultural facilities to enhance regular exchanges in popular culture. An MOU on cooperation among small and medium-sized enterprises (SMEs) was also signed, under which a working group with representatives from both the public and private sectors will be organized to foster collaboration among startups. The government evaluated these efforts as laying the foundation for a "second Korean Wave" led by SMEs, beyond the initial India market entry that centered on large enterprises.

Nine additional documents signed separately cover a wide range of areas, including science and technology, cultural exchange, sports, steel, climate and environment, and financial cooperation. The science and technology cooperation MOU includes policy sharing, joint research, and personnel exchanges in the fields of biotechnology, quantum technology, semiconductors, and key minerals. The steel cooperation MOU provides for the creation of a Korea-India public-private steel dialogue body, joint research on low-carbon steel technology, and measures to promote trade. Documents related to the implementation of Article 6.2 of the Paris Agreement and a climate and environment cooperation MOU establish a framework for international mitigation projects in India, climate change response, air and water quality management, and circular economy cooperation.

Financial cooperation is also notable. The Financial Services Commission and the Financial Supervisory Service signed an MOU with the International Financial Services Centres Authority (IFSCA) of India to promote financial hub development. The aim is to support mutual financial sector investment attraction through policy coordination between Seoul and Busan and GIFT City in Gujarat, India. The package of agreements also includes an MOU to interlink QR code payment systems, which is expected to have a direct impact on citizens of both countries.

As a result, a foundation has been established for the mutual integration of Korea's Naver Pay and Kakao Pay with India's UPI-based payment systems. The government anticipates that, once people can use their home country's payment apps in the other country without separate currency exchange procedures, the annual convenience for the 120,000 Korean visitors to India and 200,000 Indian visitors to Korea will increase, further stimulating human and material exchanges.

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