Round The World
New
Delhi, 28 December 2018
Republic
of Korea
New Delhi’s S(e)oul-mate!
By Dr.
D.K. Giri
(Prof.
International Politics, JMI)
The IXth
India-Korea Joint Commission Meeting last week in New Delhi attended by the Foreign
Ministers and their respective teams, occasions a reflection on the deepening
of relations between Republic of India and Republic of Korea, potentially
becoming soul-mates.
The JCM in
Delhi like its predecessors was to review the multi-dimensional relations
between the two countries. The zenith of India-Korea relations, dating back to
2000 years, was marked by Korean President Moon Jae-in visit in July this year
to inaugurate jointly with Prime Minister Narendra Modi, the world’s biggest
Samsung smart phone factory in the outskirt of Delhi.
Moon’s
visit broke many records: it was the longest-ever visit by any leader of both
countries, as many as 11 agreements were signed on various areas for
cooperation, he made 18 visits to different places out of which 11 were in company
of NaMo, who, breaking convention, accompanied him to Rajghat.
Apparently,
Moon-Modi rendezvous and efforts are taking India-Korea relations to a
unprecedentedly new level. Moon assumed the Presidency in May 2017 and right
from his election campaign, he had promised to elevate India-Korea ties to the same
level it has with China, USA, Japan and Russia. On getting elected, he sent a
special envoy to communicate his intent and broke protocol of appointing career
diplomats and instead sent his political advisor as ambassador to India. Of
course, the thickening of ties with India precedes President Moon. When Modi
visited Korea in 2015, the bilateral ties were transformed into a special
strategic partnership with $10 billion Korean support to India’s infrastructure
projects.
Therefore,
in addition to individual initiative of the leaders, a strong variable in
international diplomacy, the geo-political situation shaping up in
Korean-peninsula, mainly, at the behest of China, is bringing Korea closer to
India. Korea’s India policy also emanates from its New Southern Policy (NSP)
which was formulated to counter China’s belligerent political ambitions. The
immediate impetus for the policy came from China’s economic retaliation to
Korea allowing the US deployment of THAAD – Terminal High Altitude Area Defence
– anti-missiles.
Second, Korea
is peeved by China’s claim to territory held by ancient Korea, relating to the
controversy over the origins and legacy of Koguryo dynasty. Third, China was
allegedly complicit in the killing of many South Koreans in 2010 in Cheonan and
Yeonpyeong incidents. In Cheonan, South Korean ship was sunk by North Korea,
which also bombarded Yeonpyeong later in the same year. Fourth, China declared
a New Air Defence Identification Zone (ADIZ) in 2013, which overlaps South
Korea and Japan. Fifth, in a survey conducted, 71% South Koreans believe that
China is a threat.
In
addition to China’s growing militarism and expansionism in the region, Korea is
concerned by the tug-of-trade war between US & China, the protectionism of
US, militarism of China, and stagnation of economy in Japan. At the same time,
Korea is attracted by economic growth in India and its potential as a new
destination for trade and investment. South Koreans are promising and planning
to develop India into “China” as a manufacturing ‘hub’ of the world.
From India’s
point of view, its ‘Act East Policy’ compliments Korea’s New Southern Policy as
Korea’s technological advancement and manufacturing capacity matches with its economic
growth and human resource reserve. Strategically, India, through this policy seeks
to deepen economic engagement, reinvigorate cultural and civilisational
relations, to develop new strategic partnerships with countries in the Indo-Pacific
region. Likewise, Korea through its Policy, seeks to strengthen economic cooperation
by building prosperous, people-centric community of peace. Therefore, India-Korea
should build a new axis in the region.
Let us
take a closer look at cooperation in various sectors. On the economic front,
the current bilateral trade of $20 billion is to be raised to $50 billion by
2030. If Korea wants to substitute China with India as its major trade partner,
it has to do a lot more and fast. In comparison, Korea’s trade with China currently
is $281 billion. Korea is an export-led economy, bulk of its exports going to
China, followed by the US, Japan and Russia. At present, India’s total export
to Korea is $4.95 million, which is 1.3 per cent of Korea’s total imports, and
India’s import from Korea is $15.1 billion, 3.3 per cent of India’s total
imports.
Around 500
Korean companies are working in India. Samsung has built its biggest smart
phone factory with an investment of $720 million, or 49.15 billion INR, it will
produce 120 million smart phones every year and create thousands of jobs in
India. Kia Motors is setting up its plant in Anantapur district, Andhra Pradesh
with $2 billion. From March 2019, it will manufacture 300,000 vehicles
annually. Korea is involved in NaMo’s flagship projects like Make in India,
Skill India, Digital India, Start-up India, Smart-cities, and building
industrial corridors. Korea also participates in shipbuilding, aerospace
industry, manufacturing of medical device and food processing.
South
Korea is supporting the Nagpur-Mumbai Expressway with 460 million INR, and
building Bandra, Dombivli and Kalyan as smart cities. Both, New Delhi and Seoul
are encouraging government and private sectors to work in artificial
intelligence, electric vehicles, energy and healthcare. It has, since 2015,
committed a financial package of $10 billion to infrastructure projects.
Hyundai Motors which experienced 60% drop in China in 2017, has planned to
raise its manufacturing capacity to 50,000 units per year. Lotte Group, which
bore the brunt of Chinese retaliation, proposes to invest $3.5 billion in next
five years.
On
Defence, there is periodic joint-military training and exercise, joint exercise
between India Coast Guard (ICS) and Korean Coast Guard (KCG) to improve and
maintain security and inter-operability in Indian Ocean. Korea has declared to
support the US-led security strategy in Asia and India-led security in Indo-Pacific
region. Korea as a member of NSG, will support India’s membership, as China
persistently opposes it. Korea promises to co-operate with India in building
its defence and civil nuclear industries. Following the India-Korea nuclear
deal signed by former PM Manmohan Singh, talks have been held in Mumbai in
November 2014, and in Daejeon in January 2016.
Institutionally,
both countries are expanding internally, to reach out to each other. Since
Moon’s presidentship, South Korea’s National Diplomatic Academy opened the
ASEAN – India Research Centre within the Institute of Foreign Affairs and
National Security in 2018. There is a new Trade Order strategy office in the
Ministry of Trade, Industry and Energy, that will pay extra attention to India.
Korea has set up a special India Team in its Ministry of Foreign Affairs. The
Korea Trade Investment Promotion Agency (KOTRA) has been set up in 2014 in
Mumbai to promote and facilitate Korean companies in India. Both countries have
set up India-Korea Centre for Research, and Innovation Cooperation to back the
relations based on research, innovation and entrepreneurship.
On India’s
part, India has instituted the Korea plus mechanism in the Department of
Industrial Policy and Promotion in order to boost the presence of South Korean
Companies in India. It is to be upgraded to ‘Korea square’ from Korea plus. New
Delhi is contemplating the 2+2 format, it follows with the US and Japan in
dealing with bilateralism.
To be
sure, India and Korea relations have rich potential to grow into a durable
geo-political partnership. Seoul needs India as a new economic partner, in
order to reduce its dependence on Beijing, and be a part of new Indo-Pacific
policy to mitigate China-centric risks. India needs Korea as a source of trade
and investment. Both share a common vision and concerns in the emerging
economic and security architecture in Indo-Pacific region.
Unlike
China, India will pose no threat to Korea, as articulated by Korea’s Trade
Minister Kim hyun-chong, “with India we have no sensitive geo-political issues,
so economic relations will not waiver due to external factors.” Korean experts
on India are also optimistic that as India’s global foot print increases,
Moon’s people-peace-prosperity slogan will echo in the hearts of 1.3 billion
Indians. ---INFA
(Copyright, India News & Feature
Alliance)
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