India and South Korea’s Comprehensive Economic Partnership Agreement CEPA is effective from Jan 2010, and the revised Double Taxation Avoidance Agreement-2015, contributed immensely to the expanded opportunities for investments and trade in goods and services for both countries. IPG Legal assists numerous companies entering the Korean market and we have a number of Indian clients doing business in Korea at this time.
The bilateral trade, between India and Korea, grew 40% to $23.7 billion in 2021 with further increases expected.
Exports from India to South Korea are mainly mineral fuels/oil distillates, refined petroleum, raw aluminum, ferroalloys, cereals, iron, and steel.
Some major Indian investors in South Korea include Novelis Inc, (a subsidiary of Hindalco Industries); Mahindra and Mahindra; Nakhoda Lts; M/s Creative Plastic; and Tata Motors (acquired Daewoo Commercial Vehicle). Tata Motor’s cumulative investment now stands at over $400 million.
The Indian IT majors like Tata Consultancy Services (TCS); L&T Infotech; and Mahindra Tech have set up operations in the ROK, serving Korean and other foreign clientele. Currently, ROK is interested in India’s expertise in IT software services and intends to synergize it with its expertise in IT hardware, designing, engineering, and manufacturing.
There are many opportunities to leverage your business growth in South Korea. Both countries have set a target to achieve bilateral trade worth US$50 billion by 2030.
If you are interested in expanding your business in the Korean market and would like to consult with an attorney, please schedule a call at: Schedule a Call with an Attorney.
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