Third bilateral meet between India and South Korea

Indian Finance Minister Mr. P  Chidambaram and the Minister of Strategy and Finance of the Republic of Korea, Mr. Jaewan Bahk discussed wide range of issues ranging from Macro-Economic Trends and Outlook; Fiscal Cooperation; public procurement cooperation and measures to develop co-financing infrastructure projects; Revision of the Double Taxation Avoidance Convention (DTAC); Expanding Information Sharing between the Taxation Authorities during the Third Bilateral Meeting of Finance Ministers of India and Republic of Korea at Seoul.

India-Korea relations rest on deep historical ties based on a strong foundation of shared cultural heritage, commitment to democracy and desire to establish a long-term cooperative partnership. The cooperation between the two countries covers all areas of bilateral relations, namely political, economic and commercial, defence, information technology, science and technology, cultural exchange, etc. The bilateral meeting between the finance ministers is expected to further strengthen this relationship, increase mutual cooperation, and lead to increased investment opportunities in the two countries.

During the meet India and South Korea expressed their determination to achieve a trade target of $40 billion by 2015. Further India invited the South Korean businesses and industries to invest more in the Indian market, particularly in infrastructure.

The two ministers recognized the immense potential that exists between the two countries for greater investment and trade flows, and agreed to work towards realizing this potential.

They referred to the Comprehensive Economic Partnership Agreement (CEPA) which had resulted in 70 percent growth in bilateral trade in two years since its implementation in January 2010, and expressed determination to make cooperative and concerted efforts to achieve the target of $40 billion by 2015 set during the visit of India's Prime Minister Manmohan Singh to South Korea in March 2012.

The two countries agreed to sign a Memorandum of Understanding in the near future aimed at institutionalizing the cooperation between the finance ministries of the two countries and benefiting from sharing of their experiences and best practices.

The first bilateral meeting of Finance Ministers of India and South Korea was held in Seoul in September 2006 and the second meeting in New Delhi in January 2011.