A closed-door investor relations conference jointly hosted by SK Securities and India's ICICI Group in Seoul on Monday underscored the growing momentum. The event drew major Korean institutional investors including Korea Investment & Securities, Mirae Asset Securities and the National Pension Service, alongside prominent Indian conglomerates such as the Adani Group.
"There is a lot of complementarity between the two countries' industries," said Patrick Han, head of global business at SK Securities. "Financial institutions can play a key role in facilitating foreign direct investment and industrial cooperation."
India, now the world's fifth-largest economy with a gross domestic product of roughly $4.1 trillion, has emerged as an increasingly attractive destination for Korean capital. The United Nations projects the country's economy will expand about 6.6 percent in 2026, maintaining its position as the fastest-growing major economy.
Despite the momentum, economic ties remain relatively underdeveloped compared with their potential.
Trade between the two countries reached about $26.9 billion in the 2024–25 fiscal year, according to combined data from Seoul and New Delhi. For India, South Korea ranks as a mid-tier trading partner. For Korea, however, the Indian market still accounts for only around 3 percent of total exports — far behind its major destinations such as China, the United States and Vietnam.
Similarly, Korean investment in India remains modest. According to India's Ministry of External Affairs and the India Brand Equity Foundation, cumulative Korean foreign direct investment in India has totaled roughly $6.7 billion since 2000, placing Korea around the 13th-largest investor. A broader estimate by the Indian government suggests cumulative investment may be closer to $10 billion, with about $929 million flowing into India in 2024 alone.
Market participants say the relatively low base leaves significant room for expansion as both economies seek to diversify supply chains and investment partnerships.
One area drawing particular interest from investors is India's newly liberalized nuclear energy sector.
India's parliament passed legislation in December 2025 allowing private companies for the first time to participate in the country's nuclear power industry, opening the door for foreign investors and technology providers.
Frederick Peter Jones, co-founder of Fairwood Nuclear and a veteran energy executive who previously served as a strategic adviser to the president of the Organization of the Petroleum Exporting Countries, attended the conference specifically to explore investment opportunities related to small modular reactors.
"India is very interested in SMRs and all forms of energy, including green energy like solar and wind," Jones said. "Energy demand is enormous, and the country is looking at every possible option."
India has allocated 20,000 crore rupees, or about $2.16 billion, for SMR research and development under a new Nuclear Energy Mission. The government aims to deploy at least five domestically developed SMRs by 2033.
Defense cooperation deepens
The conference also highlighted expanding opportunities in the defense sector, where Korean technology has gained increasing attention following renewed tensions along the India-Pakistan border.
India is preparing to induct an additional 100 K9 Vajra-T self-propelled howitzers manufactured by Hanwha Aerospace, reflecting deepening defense ties between the two countries.
Shares of LG Electronics India surged about 50 percent on their market debut in October 2025 after the initial public offering attracted the strongest investor demand for an Indian listing since 2008.
Hyundai Motor India had earlier raised about $3.3 billion in October 2024 in what was then India's largest-ever IPO.
Shipbuilding emerges as another pillar
Shipbuilding is emerging as another promising area for bilateral industrial cooperation.
Korean shipbuilders are exploring potential technology transfers for conventional vessels such as tankers and bulk carriers to Indian partners, potentially providing an alternative to China's dominance in the segment.
In an interview with AJP earlier this year, Indian Ambassador to South Korea Gourangalal Das said New Delhi is actively seeking Korean expertise to build up its domestic shipbuilding industry.
India is backing that ambition with one of its most comprehensive industrial policy drives in decades.
Under the country's Union Budget announced last year, New Delhi unveiled a large-scale shipbuilding support program combining financing assistance, cost subsidies and cluster-based industrial development.
The initiative is aligned with the government's long-term road maps — Maritime India Vision 2030 and Amrit Kaal Vision 2047 — which aim to position India among the world's top 10 shipbuilding nations by 2030 and among the top five by 2047.
Infrastructure hurdles remain
Despite growing financial and industrial cooperation, logistical barriers remain.
One persistent obstacle is the lack of direct air connections between the two countries' major business centers. There are currently no direct flights between Mumbai and Seoul, forcing travelers to transit through hubs such as Hong Kong, Singapore or Bangkok.
Industry officials say improving connectivity could significantly boost financial and business exchanges.
The partnership between SK Securities and ICICI Group is expected to extend beyond financial services.
Follow-up meetings scheduled this week will involve major Korean conglomerates in industries including automobiles, shipbuilding, semiconductors and batteries as both sides explore new investment and technology partnerships.
The discussions also come ahead of a state visit to India that New Delhi is organizing for later this year, according to Ambassador Das.
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