Former South Korean Foreign Minister Praises Indian Diplomacy's Ingenuity, Reveals New 'Destination' for Korean Businesses

Former South Korean Foreign Minister Yoon Young Kwan said India is a perfect partner for South Korean diplomacy to flourish. (Source: ANI News)

In a recent article in the Korea YoongAng Daily , former South Korean Foreign Minister and Professor Emeritus at Seoul National University Yoon Young Kwan assessed India's skillful diplomatic strategy and the importance of the Seoul-New Delhi relationship. The World & Vietnam Newspaper translated the analysis.

"Luck" for diplomacy to shine

India is emerging as a focal point of global diplomacy. Since early March, heads of state from Egypt, Germany, Italy, Australia and Japan have visited the capital New Delhi.

As the G20 Chair in 2023, India hosted the Finance Ministers' Meeting in February and the Foreign Ministers' Meeting in early March. The South Asian nation is also holding the chairmanship of the Shanghai Cooperation Organization (SOC).

Former South Korean Foreign Minister Yoon Young Kwan. (Source: Getty)

Earlier, in early January this year, India held a virtual summit with leaders of 120 developing countries representing the global South.

Not only that, New Delhi is also tightening its multilateral diplomatic network such as the India-Australia-Indonesia trilateral dialogue and India-Israel-US-United Arab Emirates (UAE) cooperation.

Meanwhile, India has maintained a neutral stance on the Russia-Ukraine conflict.

Why is India’s diplomatic influence growing? Some of the reasons include its large population of 1.417 billion, surpassing China’s; its huge potential with abundant land; and the growing competition between the US and China in the international arena.

Over the past few years, most countries have experienced severe economic downturns due to the Covid-19 pandemic and the Russia-Ukraine conflict. However, India is an exception.

Last year, while the US and China's GDP grew by 2% and 3% respectively, India's was 6.5%. A recent Morgan Stanley report predicted that the South Asian country will surpass Japan and Germany within the next four years to become the world's third-largest economy after the US and China, and India will become the world's third-largest stock market by 2030.

A recent report from the International Monetary Fund (IMF) attributed India’s meteoric growth to successful government and digitalization measures that have boosted its growth potential. New Delhi has successfully implemented structural reforms in its economy since 2016.

Through digitalization in the financial sector, the government has issued each citizen an electronic citizen identification card and operated a widespread financial data sharing system following a banking reform.

Thanks to digital trade innovation, the economy is becoming more transparent and business-friendly, helping small and medium-sized enterprises grow and the economy recover.

The government also increased infrastructure investment from 2.8% of GDP in 2013 to 3.5% in 2022. On the foreign front, India has signed 13 free trade agreements with many countries and territories.

In addition, the ongoing shift in the international arena has also helped New Delhi rise. In the context of increasingly fierce US-China competition, American and Western businesses are gradually leaving the world's second largest economy to find "friendlier" lands. India, with its vast land fund and vibrant market, has caught the "green eye" of American and Western investors.

The perfect partner for Korean businesses

With the economy and security being dual priorities, the South Korean economy is heavily dependent on China. Bilateral trade between South Korea and China is larger than South Korea's total trade with the US and Japan combined.

Meanwhile, the economic relationship between Korea and China is also being affected by the US-China competition. Korean chip manufacturers are facing many risks when investing in China.

To secure its future, South Korea is forced to expand its economic ties with other countries. Currently, major Korean conglomerates such as Hyundai Motor, Kia Motors, Samsung Electronics, LG Electronics, SK, Hyosung and Posco are actively investing in India.

The two countries have many areas in which cooperation can be promoted.

In terms of diplomacy, former South Korean President Moon Jae-in pledged to upgrade the Korea-India relationship to the same level as the US, China, Japan and Russia, but so far, this effort has not been realized.

When it comes to South Korea’s foreign policy, it can be related to the Philippines’ diplomatic strategy, which is attracting public attention. Currently, Philippine President Ferdinand Marcos Jr. is increasingly strengthening relations with the United States. Not only that, this Southeast Asian country is also promoting diplomatic relations with Japan, Australia, and the United Kingdom to increase interaction in all aspects and reduce dependence on China.

The South Korean economy is larger than the Philippines. Therefore, expanding its diplomatic network with a strategic mindset that matches the size of its economy would be better for this Northeast Asian country to prepare for a bright future.

However, the administration of President Yoon Suk Yeol seems to be still bound by its close relationship with the US, so it seems to be indecisive in its orientations to establish a close diplomatic network with many other countries to increase its own diplomatic position.

And for South Korean diplomacy to flourish, India is a perfect partner.