South Korea is preparing a “Second Wave” of investment in India, with shipbuilding, defence manufacturing, and industrial collaboration at the forefront.
This marks a strategic shift from earlier Korean investments in automobiles and electronics, positioning India as a central partner in Seoul’s diversification strategy amid global instability.
South Korea’s Ambassador to India, Lee Seong-ho, emphasised that the next phase of cooperation would be led by shipbuilding and industrial collaboration. He explained that such initiatives would naturally expand bilateral trade, moving beyond the first wave of Korean investments in the 1990s that focused on consumer industries like automobiles and electronics.
On the strategic front, Lee highlighted the impact of the recent West Asia crisis, which underscored shared vulnerabilities in energy security and maritime stability. Both India and South Korea rely heavily on energy imports from the region, making diversification and green technology adoption critical.
He welcomed the United States–Iran deal to end hostilities, stressing that closer India–South Korea coordination is vital for safeguarding maritime routes and maintaining international order.
Lee described India as an indispensable partner in South Korea’s long-term economic and strategic diversification. He suggested that the relationship could evolve from strategic partners into integral economic partners, reflecting India’s growing role in Asia’s geopolitical and economic architecture.
He also noted India’s leadership in the Global South, saying South Korea could be a valuable partner in shaping emerging global conversations.
Defence cooperation was a major focus. Lee pointed to the K9 Vajra Howitzer programme as a landmark success, noting that both countries are already exploring a third phase of collaboration.
Discussions are underway to expand into air defence guns, missile systems, and other advanced defence platforms. Reports indicate that the Indian Army is considering procurement of up to 300 additional K9 Vajra-T self-propelled howitzers, which would be one of its largest artillery acquisitions. This signals a deepening of defence ties beyond artillery into broader advanced systems.
Shipbuilding cooperation is also gaining momentum. South Korea, which controls around 40 percent of the global shipbuilding market, is aligning with India’s Maritime Amrit Kaal Vision 2047, which aims to place India among the top five shipbuilding nations by 2047. Cochin Shipyard Limited has signed a long-term MoU with HD Korea Shipbuilding and Offshore Engineering to co-build tankers, containers, and bulk carriers.
HD Hyundai is investing USD 4 billion in a Tamil Nadu shipyard capable of producing up to 4 million gross tons annually. These projects are supported by workforce development initiatives, including a Shipbuilding Workforce Development and Technology Cooperation Centre backed by the Korea International Cooperation Agency.
Industrial collaboration extends to semiconductors and artificial intelligence. India’s Semiconductor Mission 2.0 aligns with South Korea’s fabrication strengths, creating opportunities for joint innovation in resilient supply chains.
AI-enabled defence systems, autonomous platforms, and AI-assisted military operations are also being explored, combining India’s digital scale with South Korea’s infrastructure expertise.
The evolving partnership reflects both nations’ response to global supply chain restructuring and intensifying regional security concerns. For South Korea, India offers a production ecosystem that sustains competitiveness amid rising labour costs and demographic pressures. For India, South Korean technology and industrial expertise provide a transformative boost to its maritime and defence ambitions.
Agencies
