In a deliberate move to bolster vital raw material supply chains and secure energy supplies in the face of growing global uncertainty due to tensions in the Middle East, South Korean President Lee Jae-myung recently returned from a six-day state visit to Vietnam and India.
The visit is happening at a time when the Strait of Hormuz, an important gateway for South Korea’s crude oil and industrial feedstock imports, is under increased scrutiny due to difficulties caused by the continuing confrontation between Iran and the US.
Lee met with Prime Minister Narendra Modi in New Delhi for bilateral talks, and the two leaders agreed to increase collaboration in the areas of energy, vital minerals, shipbuilding, finance, and artificial intelligence. Aiming to double bilateral trade to $50 billion by 2030, the leaders also pledged to modernise the Comprehensive Economic Partnership Agreement (CEPA) expeditiously.
The signing of fifteen memorandums of understanding (MoUs) included measures to facilitate cooperation in shipbuilding and the possible cooperative development of shipyard facilities in India. This collaboration exemplifies how India is becoming an increasingly important strategic partner for South Korea as it seeks to diversify its supply chains.
Economic relations encompassing energy, infrastructure, and technology were advanced during Lee’s meeting with President Tô Lâm in Hanoi. Despite ongoing geopolitical uncertainty, the two countries have recommitted to raising their bilateral trade to $150 billion by 2030 from $94.6 billion in 2018. They have also placed an emphasis on strengthening their supply chains.
On the Vietnam leg, a total of twelve memorandums of understanding were inked, encompassing energy, transportation, and artificial intelligence. A new area of collaboration has arisen: nuclear energy. The Korea Electric Power Corporation and the Vietnamese national energy organization are working together on nuclear project feasibility studies and funding.
As part of its larger aim to increase economic engagement with rapidly developing economies in the Global South, Seoul met with top Vietnamese officials during the visit. By diversifying trade, gaining access to resources, and expanding industrial ties in major emerging countries, South Korea aims to manage external risks. This is reflected in their outreach.
Image Credit: The Hawk
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