(News Analysis) S. Korea, India poised to cement political, defense ties

By Lee Chi-dong
NEW DELHI, Jan. 25 (Yonhap) -- Boosted by their ever-growing economic ties, South
Korea and India are actively seeking to expand and bolster bilateral cooperation
in such fields as diplomacy, security, and global issues, Monday's summit showed,
as the two states upgrade their bilateral relations to a higher level.
The strategic partnership of the two countries, both of which are emerging as key
players in the international community, is expected to contribute considerably to
peace and stability in Asia.
Given the strategic importance of the Asian countries' cooperation on bilateral,
regional, and global issues, President Lee Myung-bak's choice of India for his
first overseas trip this year was not a coincidence, Lee's aides said.
In a summit between Lee and Prime Minister Manmohan Singh in New Delhi Monday,
the two sides agreed to upgrade their relations to a "Strategic Partnership" from
the "Long-term Cooperative Partnership for Peace and Prosperity" established in
2004.
"Considering that the ROK (South Korea)-India partnership is a factor for peace
and stability in Asia, the two leaders decided to enhance bilateral relations to
a Strategic Partnership," a joint statement issued after the summit read.
The move represents the declaration of political will on the part of both
countries to expand their ties beyond traditional economy-trade linkages all the
way to diplomacy, national security, defense industry, culture, and other sectors
including space exploration and the civilian use of nuclear energy.
The South Korean president said his ongoing state visit to India is a highlight
in his overall efforts to complete a network of his New Asia Diplomacy aimed at
improving Seoul's ties with Asian neighbors.
Lee said India could serve as an "bridgehead" for South Korea's outreach to
Africa in tandem with the Asia initiative. For India's part, its "Look East
Policy" initiated in the early 1990s is back in vogue these days.
Some experts identify India as having the economic potential to compete with
China, although Indian Ambassador to Seoul Skand R. Tayal said in a recent
interview with Yonhap News Agency that India's priority is to fight poverty
rather than to compete with China.
In fact India, which has a population of 1.2 billion, is the world's fourth
largest economy in terms of purchasing power and it is known for advanced
technology in information and technology and defense products.
South Korean officials believe the country has an advantage in ties with India
thanks to the Comprehensive Economic Partnership Agreement (CEPA) that was signed
last year and came into force early this month.
"India established a free trade agreement with South Korea ahead of Japan, China
and the European Union. South Korea's trade with India will be growing faster
than those countries," Kim Dong-seon, presidential secretary for knowledge
economy, said.
He was upbeat about the summit goal of doubling two-way trade volume to US$30
billion by 2014.
The presidential office Cheong Wa Dae said the Lee-Singh summit is a "starting
point" from which they can begin to rapidly advance bilateral
information-technology cooperation, trade, and human exchanges to a higher level.
"It will also serve as a chance for the two countries to expand cooperation in
terms of diplomacy, security, national defense, and international issues," Cheong
Wa Dae spokeswoman Kim Eun-hye said.
Since forging diplomatic ties in 1973, in fact, the two sides' relations have
markedly developed. In 1996, then South Korean President Kim Young-sam's visit
paved the way for South Korean companies to open businesses here. Now, more than
380 large and small South Korean companies are operating in India. In 2004,
President Roh Moo-hyun's trip laid the groundwork for the CEPA. Officials say
the progress represents the power of summit diplomacy.
The spokeswoman said despite a lack of visible economic deals such as the US$20
billion nuclear reactor construction contract reached in a summit last month with
the United Arab Emirates, Monday's summit will lead to substantial development in
bilateral relations in a longer term.
"In particular, the two nations are expected to bolster cooperation in the
political, diplomatic, and security especially in the defense industry," she
said.
At the summit, the leaders agreed to strengthen dialogue and exchanges in the
defense field through regular high-level military exchanges, as part of efforts
to expand their defense relationship from the current basic naval cooperation to
army and air force-level interactions and trade in defense goods.
South Korea hopes to export its KT-1 basic trainer jet to India, which industry
sources say plans to purchase as many as 60 new trainer planes next year. A KT-1
jet is priced at about $7 million.
South Korea is also exploring ways to take part in India's nuclear power plant
market. India has 17 nuclear power plants and six others are under construction.
South Korean officials said India would need about 40 more nuclear power plants
by around 2030 given the pace of its electricity demand growth.
In order to join the future nuclear power plant construction project in India,
South Korea should first sign a government-level nuclear pact with it.
According to the joint statement, Lee and Singh agreed to "facilitate development
of a framework for bilateral civil nuclear cooperation."
"For now, the two nations just agreed to the need for starting formal talks on
signing the pact," another Cheong Wa Dae official said, requesting anonymity. "It
would take some time technically. In the end, it is a matter of the Indian
leadership's will (for nuclear cooperation with South Korea)."
The summit will also help expedite the implementation of the POSCO project in the
eastern state of Orissa, he added. South Korea's leading steel maker is planning
to construct a gigantic steel mill there in the US$12 billion project.
lcd@yna.co.kr
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