Korea Plus

Korea Plus is the one-stop-shop for exploring and materializing your entry plans to India.

For any information on investing in India or any other query, reach out to us at:

contact@investindia.org.in

Our Existing Relations

India and The Republic of Korea developed strong diplomatic and economic relations during the 21st century as opening up of the Indian economy in 1991 coincided with Korea’s search for new avenues to expand.

Bilateral ties between the two nations received a significant boost with the visit of Prime Minister Narendra Modi to Korea in 2015. The two nations decided to commence negotiations to amend Comprehensive Economic Partnership Agreement (CEPA) and strengthen cooperation in sectors such as energy, electronics and shipbuilding.

Major Korean Investors

Bilateral trade between India and Korea touched $19 bn in 2018.

Korea is the 16th largest investor in India, investing $2.6 bn during 2000-18.

Korean EXIM Bank signed an MoU with EXIM Bank of India in June 2017, to provide $9 bn credit for India’s infrastructural development.

    • The bilateral consular relations established between India and The Republic of Korea in 1962, were upgraded with Ambassador appointment in 1973. The year 2018 marks 45 years of successful diplomatic ties between the two nations. 

    • Both countries have made great strides in their relations in recent years, spurred by a significant convergence of interests, mutual goodwill and high-level exchanges.

    • With the visit of Indian PM Narendra Modi to Korea in May 2015, the bilateral relations were upgraded to ‘Special Strategic Partnership’. In the ‘Joint Statement for Special Strategic Partnership’, the Indian Prime Minister and the Korean President agreed to establish a 2+2 consultation mechanism at Secretary/Vice Minister of Foreign Office and Defence Ministry.

    • Bilateral meeting between PM Modi and President Moon Jae-in on the sidelines of G-20 Summit, held in Hamburg in July 2017, led to discussions on further participation through programmes like ‘Make in India’, ‘Digital India’ and ‘Start-up India’.

    • The Republic of Korea ranks 16th in FDI inflows to India, investing $2.6 bn during 2000-18. Metallurgy, automobile, electronics, prime movers, machine tools, hospital and diagnostic centers are the sectors that attracted maximum FDI.

    • Bilateral trade touched $18.9 bn in 2018. Imports from Korea were valued at $14.9 bn during 2017-18. Auto-components, telecom equipment, iron & steel products, petroleum refined products and mechanical appliances are key areas for imports.

    • Exports to Korea were valued at $3.9 bn during 2017-18. Non-ferrous metals, petroleum and related products, chemicals and textile yarn formed the bulk for exports from India.

    • Korea and India signed the CEPA Free Trade Agreement in August 2009, which became operational from 1 January 2010. In addition, an Indian Chamber of Commerce in Korea was established in January 2010 to support Korean companies interested in doing business in India.

    • Korea houses Indian Council for Cultural Relations in Seoul and Busan to promote Indian culture in the country and also to strengthen cultural and educational ties between the two nations. The Council offers regular classes in yoga, dance, Hindi language, musical instruments and cooking.

    • Sarang, the annual festival of India in Korea was initiated in 2015 to showcase diverse Indian culture and art forms in various parts of Korea.

    • Several arrangements between Korean and Indian educational institutions continue to promote people-to-people exchanges. Indian institutes like Jawaharlal Nehru University and the Delhi University offer programmes in Korean studies and Korean language courses.

    • Bilateral Civil Aviation Agreement of 1994 was revised in November 2015 to increase weekly flights between the two countries to 19, starting new operations by Korean Airlines with direct flights to Delhi. India also extended visa-on-arrival facility for Korean tourists from April 2014 to boost travel between the two countries.

Recent Investments

Samsung inaugurated its new mobile phone manufacturing facility in Noida - the largest in the world, built at a cost of $756 mn on an additional 14 acres of land.

16 Korean companies signed MoU with the Government of Andhra Pradesh to set up auto ancillary units, which would cumulatively invest $737 mn and create 6,580 jobs. The auto giant Kia Motors is setting up its first car manufacturing plant in India in Anantapur district of Andhra Pradesh with an investment of $1.1 bn.

Hyundai plans to invest over $1 bn in India by 2020 on new products, development of powertrain and setting up of a new office building.

Youngone Corporation, a leading Korean textile firm and largest foreign investor in Bangladesh, signed MoU with Telangana Government to establish a $300 mn factory in Warangal, which would create 10,000 jobs.

Korea Plus

Korea Plus is a bilateral initiative between the Republic of India and the Republic of Korea to promote, facilitate and retain Korean investments in India. It is envisaged as the first reference point for Korean Investors in India.

Key Functions

  • Opportunity assessment
  • Policy and incentive advisory
  • Location assessment
  • Market entry strategy
  • JV and strategic partner research
  • Approvals and compliance advisory
  • Issue redressal support
  • Expansion advisory
  • Policy impact analysis

Team Advantages

  • Nodal agency between investors and government

  • Joint team of investment experts from both countries

  • Business advisory

  • One-stop-agency for Korean investors

  • End-to-end facilitation

Korea Plus is envisaged as the first reference point for Korean Investors in India. Korea Plus has facilitated more than 100 Korean Investors in a short span of about two years. It acts as a partner throughout the investment cycle of Korean companies. This shows our commitment towards welcoming Korean people and companies; ideas and investments.

Shri Narendra Modi, Hon'ble Prime Minister of India at IKBS, 2018

Korea Plus has been a game-changer for our effort to promote India as an essential part of the international strategy of any Korean business house—from conglomerates to SMEs. Until the establishment of Korea Plus, we faced great difficulty in managing even the basics of long-distance facilitation for business visitors after they left our doorstep. Today, with Korea Plus, we have the confidence that our Korean business guests will be given the best possible support to persuade them that India is indeed an inevitable destination for their business.

H.E. Vikram Doraiswami, Ambassador of India to The Republic of Korea

We along with the entire team, wish to express our sincere gratitude for all the support and assistance extended to us by you in connection with our feasibility study on investing and setting up its first manufacturing unit in India. We further wish to express our appreciation for the assistance provided by Korea Plus which has been helpful for us in making an informed decision.

One of the world’s leading Korean automobile manufacturer,

Success Stories

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    Korea’s leading passenger vehicle manufacturer setting up unit in India

    The company is South Korea's second-largest automobile manufacturer and…

  • open

    World’s leading spandex manufacturer setting up plant in India

    The South Korean diversified industrial conglomerate, founded in 1966, is one…

  • open

    Korea’s leading auto-component manufacturer setting up its second unit in India

    The company is one of the leading Korean auto-component manufacturer and…

  • Automobile

    • 3rd

      India to be 3rd largest automotive market by volume by 2026

    • 5th

      Korea is the 5th largest auto-parts industry

    • 40%

      India’s share of global R&D in the sector

      • Korea is the sixth largest producer of vehicles while India is the fourth largest vehicle market in the world. 
      • Hyundai is the second largest manufacturer and leading exporter of passenger cars in India with exports to more than 87 countries. The company plans to manufacture electric vehicles in India and launch its first model by 2019.
      • Kia Motors, South Korea’s second largest automobile manufacturer is in the process of investing more than $1 bn in its new plant in Andhra Pradesh.
    Visit Sector
  • Electronic Systems

    • $122 bn

      Production volume recorded by Korean electronics industry in 2017

    • $400 bn

      Value of Indian electronics market by 2025

      • The Korean semiconductor industry ranks second in the world, with 16.2% share in the global market.
      • Korea’s Samsung Electronics is the world’s biggest chipmaker and ranks second in the global semiconductors market, with 11.6% share.
      • India’s electronics market is projected to grow at a CAGR of 17% during 2014-20, to reach $400 bn by 2025.
      • R&D centres of Samsung and L.G. in Bengaluru are their largest outside of Korea.
      • Samsung, India’s biggest mobile and TV brand, aims to generate revenue of $10 bn in India in 2018. The company plans to invest $756 mn in a manufacturing facility in Noida, to double their production capacity for mobile phones and refrigerators.
    Visit Sector
  • Textiles

    • $223 bn

      Value of Indian textile exports by 2021

    • 85%

      Level of technology usage in the Korean textile industry by 2020

    • $300 bn

      Indian textile exports by 2024

      • Korea is one of the leading producers of technical textiles in the world.
      • India is the largest producer of cotton and jute and second largest exporter of textiles and apparels
      • Hyosung, Korea’s leading chemical and technological textile company and the largest global spandex producer, plans to invest $100 mn for a new manufacturing plant in Maharashtra, with the object of increasing its share in the Indian spandex market to 70%.
    Visit Sector
  • Chemicals

    • 3rd

      India is 3rd largest consumer of polymers in the world

    • 5th

      Korea 5th largest speciality chemicals industry in the world

    • $403 bn

      Value of Indian chemical industry by 2025

      • Korea is the fifth largest speciality chemicals industry globally, with four companies featuring in the world's top 50 rankings by the American Chemical Society.
      • India is the third largest producer of chemicals in Asia, with an estimated size of the sector at $139 bn.
      • South Korean chemicals firm Songwon has opened a pilot plant in Gujarat to produce a wide range of chemicals for a broad spectrum of applications.
    Visit Sector
  • Food Processing

    • $33 bn

      Investment in Indian food processing sector by 2020

    • 127

      Identified agro-climatic zones in India

      • Korean food industry is undergoing rapid growth and is expanding investment in emerging markets as well as in R&D. Lotte Group and Nong Shim are the top packaged-food companies with 9.5% and 6.5% global market share, respectively.
      • India is the world's largest producer of milk, and second largest producer of food grains, fruits and vegetables.
      • Korea’s Lotte Group recently acquired Ahmedabad-based Havmor Ice Cream and expects India to contribute 5% to its global revenues by the end of 2020.
    Visit Sector