Indian prime minister Narendra Modi’s state visit to South Korea has resulted in the two countries signing a memorandum of understanding (MOU) to co-operate in maritime-related matters.
A statement issued by South Korea’s Ministry of Oceans and Fisheries on 19 May said that South Korea and India plan to co-operate in the areas of crew training.
The two countries also plan to establish joint shipping ventures while South Korea would invest in Indian ports and terminals.
Prior to this, India sought out South Korean shipbuilders Hyundai Heavy Industries (HHI), Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering to collaborate with its own yards, namely Cochin Shipyard, Larsen & Toubro unit L&T Shipbuilding, and Pipavav Shipyard to build LNG carriers and defence vessels.
Modi’s visit included a tour of HHI’s main yard in Ulsan on 18 May.
The pro-business Modi has been promoting deregulation to make his country more open to foreign investment to improve the country’s infrastructure.
Modi’s visit also resulted in India and South Korea agreeing to remove double taxation for the Indian offices of South Korean shipping companies, a move that could see those companies saving KRW20 billion in annual taxes.
The ministry’s shipping and logistics director Jung Ki-jung remarked, “Thereafter, through the South Korea-India co-operation and the investment presentation, both countries can enjoy consistent and unconditional mutual seaborne trade. South Korean shipping companies could also solve the problem of crew shortage.”