A ppt on Bilateral relationship between India and South Korea with special ref to trade; Era Business School, New Delhi (PGDM 2012-14)

1. INDO-KOREA RELATIONS
(with special focus on bilateral trade
and economic relationship)
A Presentation by Col Ajay K Raina, SM

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Official name.
Taegukgi.
Geo size.
Population.
Size of economy.
Ideology.
Govt.
Domain.
Currency.
Religion.
Capital.
Official Language.
소개
Sogae

3. Sits at a Strategic Location
Korea Strait
Senkaku islands

4. Objective
To study the relations between India and Korea with
special focus on bilateral trade and economic
relationship.

5. Paper to Ppt: Scope
• Part 1 – Historical perspective
(pre-modern times till 1974).
• Part 2 – Building up of trade ties
(1974 – 2009).
• Part 3 – New surge
(2009 till date).
• Part 4 – What lies
ahead!

6. PART 1 – HISTORICAL
PERSPECTIVE
(PRE-MODERN TIMES TILL 1974)

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The First Contact
48 AD; Silla.
4th Century AD; T&T.
14th Century – Sultanate & Confucians; Buddhism.
Cold era of 500.
Colonial cousins.
WW II…..Sayonara!
1945 – 38th Parallel.
1948; trying to be pre-1945.
1950 Korean War.

8. Role of India : 1947-1954
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Newly born babies; course corrections.
UNTCOK – 1948.
KPS Menon.
UN Resolutions:– Who was the aggressor?
– Sending troops to Korea.
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Vijay Laxmi Pandit and Armistice Agreement’53.
CFI.
NAM & US; Socialist & Capitalist; To one’s own!
1962 on to 1973.

9. Part 2 – Building up of trade ties
(1974 – 2009)

10. 1974 - 2000
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Nix trade till 1974.
First trade agreement; generic.
1978 bilateral x 36.
MFN.
1985 – thaw; double taxation.
Collapse of a giant.
1990/91 – SAP+LPG+LE vs Restructuring post CW.
1993 – Narsimha Rao; 1996 – Kim Young-sam.
1996 – Protection of Investment.
1999 – Kim Jong-pil; PSLV & KITSAT-3.

11. Turn of the Century
• 2004 - Roh Moo-hyun; Long-term Cooperative
Partnership for Peace and Prosperity.
• 2005 - India-RoK Foreign Policy and Security
Dialogue; expansion into defence.
• Re-assertion of LE policy with economic
dimensions.
• 2006 – Study Group.
• 2009- CEPA.
• New era.

12. The Net Effect

13. Part 3 – New surge
(2009 till date)

14. Moving on: 2010 & Beyond
• Strategic partnership post CEPA.
• Multiple fronts from diplomatic to defence to
economic to cultural fields.
• 2010 - Lee Myung-bak.
• 2011 – Pratibha Patil.
• 2012 – MM Singh.
• 70% jump post CEPA.
• Posco – one off.
• Aiming to hit 40 Billion by 2015.

16. Facts and Figures
• 20 per cent of the Indian small car
market share.
• Over 50 per cent of market share for
consumer durables.
• US$158 billion vs US$129 billion in
the last ten years.
• Tata & Daewoo trucks; M&M &
Ssangyong.

18. Part 4 – What lies ahead?

19. Analysis of the Potential
• Current trade and investment vs potential.
• Korea’s share in India’s global trade volume is less than 3 per
cent.
• India accounts for only 1.3 per cent of Korea’s total outbound
FDI flow.
• Challenge of a trade deficit; better access for IT,
pharmaceutical and agricultural products.
• Healthy recent past and need for a healthier future.
• Negotiations between friends to review the implementation
of CEPA and examine the need for upgrading.
• eg the largest number of pharmaceutical products registered
with the US FDA by any foreign country; mangoes are world
class and so are many agricultural products.

20. RoK’ Exports to India
%age
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5
Petrochem
9
Auto parts
18
Semi conductors
Machinery
14
Shipping
10
Wireless eqpt
LCD Devices
8
Steel
6
22
Others

21. Indian Exports to RoK
%age
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18
Gems/stones
Chemicals
22
Pharma
Textiles
24
Agro
9
16
Others

22. Issues : India’s Outlook
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CEPA & trade barriers.
Non trade barriers.
Govt policies.
Licensing requirements.
BIS requirements.
Foreign participation in services.
Bureaucratic hurdles.
Clogged judicial system.
Bias in award.
Corruption.
Licensing and Inspection costs

23. Issues : RoK
• Stiff regulatory framework.
• Very high standards and
adherence.
• KFDA requirements.
• KPTA – trade secrets.
• Frequently changing
labelling patterns.
• Appointment of inspectors.

24. The Road Ahead
• IT sector – HW & SW.
• Science and Technology –
Financials & HR.
• Pharmaceutical Industry –
R&D, clinical trials, mutual.
• Broadcasting- Products &
Consumers.
• Tourism - History; Buddhism.
• Healthcare- Mutual.
• Construction and Related
Services – Tech & Demand.
• HR – Shortage & Plenty

25. Part 5 – Conclusion
• A long association with huge
gaps in-between.
• Suspicion; search for global
entity.
• Realities of post cold war.
• Strong complementarities.
• Shifting bases of economies.
• Comparative advantage
based.
• Dynamic equations.
• Miles to go!

26. 감사합니다
(Gamsahabnida)