South Korea's Lee to seek big boost in economic ties in summit with India's Modi

Highlights:

• First South Korean presidential state visit to India in eight years
• Summit aims to nearly double bilateral trade to $50 billion by 2030, Seoul says
• Lee calls for deeper strategic partnership amid global supply chain instability

South Korean President Lee Jae Myung heads into talks with Indian Prime Minister Narendra Modi in New Delhi on Monday, aiming for a big boost in economic cooperation, particularly in areas such as shipbuilding.

It is the first South Korean presidential state visit to India in eight years.

"The level of economic cooperation between South Korea and India is still very low," Lee said on Sunday at a dinner meeting with members of the Korean community in New Delhi.

"Going forward, we will expand that space and make the relationship between South Korea and India completely different from what it is now."

The two countries are seeking to improve their Comprehensive Economic Partnership Agreement with the aim of nearly doubling bilateral trade to $50 billion by 2030 from $25.7 billion last year, according to presidential adviser Wi Sung-lac.

During his stay, Lee will also take part in business events with corporate leaders. Other areas where the countries might work together include finance, artificial intelligence and defence, Wi said.

Seoul looks to New Delhi for naphtha

Lee said on Sunday that supply chain instability and global economic strains linked to the Iran war will make the countries "the most important strategic partners" for each other. He also described India as no longer just a consumer market, but a key country in global production and supply chains.

Last month, South Korea urgently asked India to expand naphtha supplies, seeking to cushion potential disruption from Middle East tensions.

India accounted for about 8% of South Korea's naphtha imports last year. South Korean Trade Minister Yeo Han-koo said greater imports could also help ease trade imbalances between the two countries.

South Korea had a $12.8 billion trade surplus last year, with exports worth $19.2 billion and imports of $6.4 billion, according to Korea International Trade Association data.

In a policy seminar at South Korea's parliament last week, Maeng Hyun-chul, a research fellow at Seoul National University's Asia Center, noted India's longstanding complaint of a widening trade deficit with South Korea and said that political ties had not kept pace with commercial ties.

He said shipbuilding could emerge as an area for greater cooperation because it matches India's priority on job creation while drawing on South Korean industrial strengths. Food and consumer sectors linked to the popularity of Korean culture could also be areas for growth, he added.

Lee will be visiting Vietnam after India.