Korea, India sign 20 MOUs in steel, shipbuilding, digital services

Samsung Electronics Executive Chairman Lee Jae-yong, left, holds a Galaxy Z Flip 7 foldable smartphone produced at his company's factory in Noida, India, to take a selfie with President Lee Jae Myung and India's Prime Minister Narendra Modi during a state luncheon in New Delhi, Monday. Courtesy of Cheong Wa Dae

Business leaders from Korea and India signed 20 memorandums of understanding (MOUs) in New Delhi on Monday (local time) on the occasion of President Lee Jae Myung's state visit to the world’s most populous country.

During a forum held on the sidelines of the president’s visit, businesses from the two countries agreed to boost partnerships in steel, shipbuilding, digital services, energy and other sectors.

With POSCO Group Chairman Chang In-hwa in attendance, the Korean steelmaker held a signing ceremony with JSW Steel for a $7.3 billion investment deal to establish a joint venture that will build and manage an integrated steel mill in Odisha.

Once construction is completed in 2031, the factory will have an annual capacity of 6 million tons. The two steelmakers are considering using renewable sources with fossil fuels to power the facility.

POSCO has sought since 2004 to build a facility in the eastern Indian state that will produce steel from raw materials in a single location.

The Korean firm agreed in October 2024 to jointly develop an integrated steel mill with India’s largest steel producer and signed a nonbinding heads of agreement last July. Last week, JSW’s board approved the investment to establish the joint venture with POSCO.

From right, POSCO Group Chairman Chang In-hwa, POSCO CEO Lee Hee-geun, JSW Steel CEO Jayant Acharya and JSW Group Chairman Sajjan Jindal pose during a joint venture agreement ceremony in New Delhi, Monday. Courtesy of POSCO

HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company overseeing HD Hyundai’s shipyards, signed two separate MOUs with three Indian institutions in the presence of HD Hyundai Chairman Chung Ki-sun.

The shipbuilding group has expressed interest in building a new shipyard in India in line with the country’s Maritime Amrit Kaal Vision 2047, a long-term blueprint to transform India into a global maritime leader by the 100th anniversary of its independence from the United Kingdom.

Hyundai Motor partnered with TVS Motor to jointly develop eco-friendly, high-safety three-wheeled electric vehicles. The Korean carmaker unveiled its E3W electric three-wheeler concept model last year as part of its push into the local mobility market.

Naver CEO Choi Soo-yeon took part in a signing ceremony for an MOU with Tata Consultancy Services for cooperation in digital map services. The two IT firms agreed to combine each of their capabilities in artificial intelligence (AI), cloud and business-to-consumer services.

GS E&C CEO Huh Yoon-hong joined MOU signings with Arie Energy and Suzlon Energy for renewable energy projects, which are expected to create a combined 400 jobs.

The forum was attended by Samsung Electronics Executive Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Chung Euisun, LG Group Chairman Koo Kwang-mo and more than 600 business leaders and government officials from both countries.

President Lee called on business leaders at the event to continue investing and cooperating in order to expand their global presence.

"We should seize India’s dynamism as an opportunity and work to more than double our current trade volume," he said.

"By combining India’s world-class capabilities in AI and software with Korea’s manufacturing strengths in semiconductors, batteries, automobiles and shipbuilding, our two countries can generate immense synergy."

President Lee Jae Myung shakes hands with Hyundai Motor Group Executive Chair Chung Euisun as he leaves Korea-India Business Forum held in New Delhi, Monday (local time). Yonhap

POSCO, Hyundai Motor and Krafton delivered presentations on practical ways to strengthen cooperation.

On Tuesday, the Korea-India Business Partnership event will be held in the Indian capital, where companies from both countries will showcase their products and technologies as they seek to deepen partnerships.

The president will travel to Vietnam on Tuesday for the second leg of his two-nation trip.

Chey Tae-won, chairman of SK Group as well as the Korea Chamber of Commerce and Industry, plans to accompany the president, along with other conglomerate leaders in the business delegation.

Industry officials expect the president’s visits to pave the way for Korea’s major conglomerates to expand in fast-growing markets, helping hedge against uncertainties stemming from the Middle East crisis and a global increase in protectionist policies.