Korea and India Agree to Secure Energy Security and Build Supply Chains at Summit

President Lee Jae-myung and Indian Prime Minister Narendra Modi address a joint press conference in New Delhi on April 20.

President Lee Jae-myung made a state visit to Vietnam and expanded diplomatic activities designed to build global supply chains after successfully wrapping a state trip to India from April 19 to 21, the first such visit in eight years.

President Lee agreed to stabilize the supply of raw materials and boost diplomatic relations during his summit talks with Indian Prime Minister Narendra Modi.

President Lee agreed to promote practical cooperation in nuclear power and strategic industry sectors.

President Lee’s visit to the emerging economic powers aims to secure energy security amid uncertainties, caused by the aftermath of the Middle East situation and solidify partnerships with the emerging economic countries.

At the center of the achievements President Lee made during his state visit to India is Korea agreeing to promote cooperation in the economic and resources sectors.

Both leaders agreed to cooperate in energy and raw materials, reflecting the stark reality of the present.

In particular, Korea is facing an urgent task of securing a stable supply of naphtha, a basic raw material of the petrochemical industry in the wake of geopolitical upheaval.

Korea and India agreed to accelerate negotiations to improve the Korea-India Comprehensive Economic Partnership Agreement (CEPA).

CEPA, which went into effect in 2010, has served as a buttress to prop up bilateral economic relations, but a need for upgrading the deal has been raised to reflect rapidly changing global commerce conditions.

President Lee and Indian Prime Minister Modi agreed to redouble annual bilateral trade from the current $25 billion to $50 billion.

The deal marks both countries’ willingness to make their economic structure a mutually reciprocal one by combining India’s potential and Korea’s advanced technology power. To this end, both sides agreed to inaugurate an industry cooperation committee.

The new committee serves as a window to regularize exchanges in future strategy sectors, such as core mineral resources and nuclear power generation.

India is a nation abundant with core mineral resources, such as rare-earth elements while Korea boasts of world-class processing and commercializing capabilities.

Strategic cooperation through the launch of the committee is expected to greatly contribute to overcoming a crisis in the supply chains of the Korean major industries, such as semiconductor and secondary battery.

The committee is also expected to take up agendas, such as technology cooperation and infrastructure buildup in the nuclear power sector.

President Lee departed for Hanoi on April 22 for the second leg of his Asian trip.

President Lee, on a state visit to Vietnam, shakes hands with General Secretary To Lam of Vietnam's Communist Party after they released a joint press statement in Hanoi on April 22. (Photos on the courtesy of the Presidential Office)

Korea and Vietnam Strike 12 MOUs in Areas Like, Nuclear Power and AI

President Lee, on a state visit to Vietnam, held a summit with General Secretary To Lam of Vietnam’s Communist Party on April 22 and they agreed to expand cooperation in future strategy sectors, such as infrastructure, and science and technology. To this end, both countries struck 12 agreements.

Cheong Wa Dae said in a written briefing that President Lee had a summit with Vietnamese Party Secretary General Lam and they discussed ways of developing their bilateral ties as a “Comprehensive Strategic Partner” and regional and international developments.

Both leaders agreed to elevate cooperation in all areas encompassing trade and investment, energy/nuclear, infrastructure, science and technology, and culture and manpower exchange to the next level.

Both sides struck 12 agreements, including an MOU on safety cooperation in food, pharmaceuticals, cosmetics and medical equipment.

The two countries concluded negotiations on hat-treated poultry quarantine, paving the way for Korea’s entry in the Vietnamese pharmaceutical and meat markets.

Both sides agreed to expand bilateral trade to $150 billion by 2030 and ramp up cooperation in trade and investment.

Both countries took up core agendas, such as cooperation in nuclear power and power infrastructure in the energy sector.

President Lee, disclosing Korea’s willingness to participate in Vietnam’s new nuclear power plant construction and power infrastructure business, proposed expanded cooperation in energy transition.

Party Secretary General Lam concurred on the proposal. Korea and Vietnam agreed to ramp up cooperation in supply chains by combining resources and technologies with a focus on core mineral supply chain centers.

KEPCO struck an MOU with PVN to cooperate in supply chains for the construction of the Ninh Thuan-2 nuclear power plant and launch a business feasibility analysis with the leaders of both countries in attendance in Hanoi on April 22.