Korean Govt. urging local businesses to invest in Indian SME sector

In order to strengthen the economic ties between the two countries and introduce new joint ventures, the Korean trade minister, Kim Jong-Hoon has urged the local Korean businesses to invest in India. This announcement was made in order to promote the money invested by Korean individuals and privately owned businesses to invest in micro, small and medium enterprise (MSME) sector. This move was also followed by a request by the ministry to lower the entry barriers currently imposed on Korean companies to invest in India.This declaration was made recently in New Delhi by the Minister while addressing a business session on ‘India – South Korea: Building Strategic Relationship.’ This session was part of the seminar organised by Confederation of Indian Industry (CII).

Kim Jong-Hoon, who was on a visit to India in order to review the implementation and expanding the India – Korea comprehensive economic partnership agreement (CEPA), stated that the current total of the bilateral trade between India and South Korea is $17 billion dollars and it has seen a 45 per cent increase in the last one post the implementation of CEPA.

The minister was quick to point out that Korea has a strong base for manufacturing and with the economic growth happening in India, it has a robust service sector. The minister also pressed on the subject of movement of Indian IT professionals to South Korea in order to boost the migration relations between the two countries.

The Korean officials are more than happy with the new proposal of investing in the Indian market and Jung Soo Shin, leader of Korean Business Delegation and CEO, Southwest Asia, Samsung Electronics, expressed that Korean companies are very keen to invest in Indian market as they see a huge potential for future growth. However, before the process kicks-off the Koreans are a little sceptical about the physical infrastructure of the country.

Vinnie Bhadra