AMLEGALS connects Seoul, Busan, Incheon, Ulsan and Daejeon strategy to pan-India regulatory execution. The South Korea Desk advises enterprises on the Indian-law decisions behind semiconductor and electronics projects, automobile and e-mobility manufacturing, shipbuilding and maritime ventures, green energy and steel, DPDPA compliance, entity setup, M&A structuring and dispute resolution — aligned to the India-Korea Special Strategic Partnership and the Comprehensive Economic Partnership Agreement.
The Republic of Korea is among India’s most significant industrial partners in Asia. Bilateral trade stood at approximately USD 27 billion in 2025-26, and both governments have set a target to double it to USD 54 billion by 2030. Korean enterprises have a deep and visible manufacturing footprint in India across automobiles, consumer electronics, steel and heavy industry — a structural indicator of the depth of the commercial relationship, even as cumulative Korean foreign direct investment into India, at approximately USD 7 billion, remains modest relative to the scale of trade.
The relationship has entered a structural acceleration phase. India and Korea maintain a Special Strategic Partnership, guided by a Joint Strategic Vision for 2026-2030 adopted following the 2026 state visit, which spans semiconductors and advanced manufacturing, e-mobility, green energy, shipbuilding and maritime logistics, and supply-chain resilience. The India-ROK Industrial Cooperation Committee aligns government priorities with industry participation, while a dedicated shipbuilding framework supports greenfield shipyard development in southern India. The India-Korea CEPA, in force since 2010, is under modernisation to rebalance trade and broaden market access.
For Korean enterprises, India presents a distinctive legal terrain: incentives across semiconductors, electronics, automobiles, green energy and shipbuilding, FEMA and FDI compliance requirements, Labour Codes in force since 21 November 2025, the Digital Personal Data Protection Act 2023, transfer pricing scrutiny under the revised India-Korea DTAA, CEPA rules-of-origin qualification, and CCI merger control with the deal value threshold (effective 10 September 2024). The South Korea Desk treats these as a single integrated execution path — from Korean boardroom decision to Indian on-ground compliance.
Incorporation of Indian subsidiaries, branch and liaison office registration, FDI route analysis (automatic and government), shareholders’ and joint-venture agreements, downstream investment compliance, FDI reporting via Form FC-GPR and Form FC-TRS on the RBI FIRMS portal, annual FLA returns, FEMA compounding and step-down subsidiary structuring for Korean group companies.
Manufacturing entity setup, production-linked incentive schemes for automobiles and advanced chemistry cell batteries, the FAME framework and successor schemes for electric mobility, supplier and component supply agreements, dealer and distribution structuring, technology licensing, transfer pricing documentation and land and environmental clearances for plant establishment.
India Semiconductor Mission incentives, fabrication and assembly-test-mark-pack projects, Design Linked Incentive eligibility, electronics manufacturing under production-linked incentive schemes, equipment supply and technology licensing contracts, IP co-ownership structuring, SEZ and STPI benefits and component ecosystem development for Korean technology enterprises.
Greenfield shipyard development, joint-venture and technology-transfer structuring for shipbuilding, Maritime India Vision alignment, Sagarmala project participation, Maritime Development Fund interface, port concession and terminal agreements, classification and equipment supply matters and multimodal logistics under the National Logistics Policy.
National Green Hydrogen Mission and SIGHT programme structuring, renewable and offshore wind projects, battery and energy-storage ventures, steel and specialty materials projects, PCPIR participation, environmental clearances under the EIA Notification 2006 and incentive eligibility for Korean industrial enterprises.
DPDPA 2023 and DPDP Rules 2025 compliance architecture through the Inviolum™ framework, AI governance structuring through the AIGCF™ framework, IT Amendment Rules 2026 compliance for synthetic content labelling, Consent Manager registration and Significant Data Fiduciary obligations for Korean enterprises handling personal data in India.
Structuring, due diligence, shareholders’ and joint-venture agreements for Korean acquisitions and partnerships in India, technology licensing and transfer pricing documentation, competition law (CCI) merger notification including deal value threshold analysis, FDI sectoral compliance, post-closing governance and integration advisory.
Revised India-Korea Double Taxation Avoidance Agreement analysis, CEPA tariff and rules-of-origin advisory, withholding tax on royalties and fees for technical services, permanent establishment risk assessment, transfer pricing documentation and benchmarking (TP study, master file, CbCR), advance pricing agreements, GST advisory on cross-border services and customs duty optimisation.
Forum and seat analysis, institutional arbitration under KCAB (Korean Commercial Arbitration Board), ICC, SIAC and Indian institutions, commercial court proceedings, interim relief applications, enforcement of foreign awards under the Arbitration and Conciliation Act 1996 (Part II) and mediation under the Mediation Act 2023.
| Instrument | Status | Relevance |
|---|---|---|
| India-Korea Special Strategic Partnership | Joint Strategic Vision 2026-2030 | Diplomatic umbrella for bilateral relations. The 2026-2030 Joint Strategic Vision spans industrial cooperation, semiconductors and advanced manufacturing, e-mobility, green energy, shipbuilding and maritime logistics, supply-chain resilience and digital infrastructure. Provides the political framework within which commercial and legal engagement operates. |
| India-Korea CEPA | In force since 1 January 2010; upgrade negotiations ongoing | The Comprehensive Economic Partnership Agreement governs trade in goods, services and investment and was the first comprehensive bilateral trade agreement signed by India. Modernisation negotiations are ongoing, addressing market access, rules of origin, non-tariff barriers, digital trade and supply-chain cooperation. Relevant to tariff planning, rules-of-origin qualification and services commitments. |
| Revised India-Korea DTAA | In force 2016 | Governs taxation of cross-border income with a 10% withholding rate on royalties and fees for technical services and on interest, and 15% on dividends. Permanent establishment definition and attribution rules are critical for Korean companies with project offices, dependent agents or secondees in India. |
| Korea Plus | Established 2016 | Dedicated facilitation mechanism housed within Invest India under the Department for Promotion of Industry and Internal Trade, supporting Korean investors through handholding, grievance redress and investment tracking across the project lifecycle. |
| India-ROK Industrial Cooperation Committee | Under the 2026-2030 Joint Strategic Vision | Institutional mechanism for collaboration in semiconductors, advanced manufacturing, e-mobility and green energy, aligning government-to-government priorities with industry participation. Relevant for incentive eligibility, technology-collaboration structuring and co-investment. |
| Shipbuilding and maritime cooperation framework | Adopted under the 2026-2030 Joint Strategic Vision | Framework to develop greenfield shipyards in southern India with Korean industry participation, supported by the Korea Marine Equipment Association and India’s Maritime Development Fund. Relevant for joint-venture structuring, technology transfer and equipment supply contracts. |
| Bilateral trade target | USD 54 billion by 2030 | Both governments have set a target to double bilateral trade to USD 54 billion by 2030, with structured dialogues on economic security, supply-chain diversification and digital integration. Indicates the policy direction shaping sectoral access and facilitation. |
Bilateral frameworks are reviewed as of October 2026. CEPA upgrade negotiations are ongoing and terms remain subject to change. Investment protection currently relies on contract-level arbitration clauses and the India Model BIT framework. Korean investors benefit from India’s FDI liberalisation across the sectors listed below.
| Sector | Policy incentives and framework | FDI route |
|---|---|---|
| Semiconductors and electronics | India Semiconductor Mission, Design Linked Incentive, Modified Scheme for Semiconductors and Display Fab, electronics PLI, SEZ and STPI benefits | 100% FDI automatic route |
| Automobiles and e-mobility | PLI for automobiles and auto components, PLI for advanced chemistry cell batteries, FAME framework and successor schemes, SEZ benefits | 100% FDI automatic route |
| Shipbuilding, ports and maritime | Maritime India Vision 2030, Sagarmala programme, Maritime Development Fund, shipbuilding financial assistance, major and non-major port concessions | 100% FDI automatic route |
| Green energy and hydrogen | National Green Hydrogen Mission, SIGHT programme, offshore wind, ISTS charge waiver, energy-storage incentives | 100% FDI automatic route |
| Steel, metals and materials | PLI for specialty steel, PCPIR regions, specialty chemicals, environmental clearances, hazardous waste authorisation | 100% FDI automatic route |
| Consumer electronics and appliances | Electronics manufacturing PLI, component ecosystem schemes, SEZ and STPI benefits, BIS certification framework | 100% FDI automatic route |
| Defence and aerospace manufacturing | Defence manufacturing framework, offset policy, SRIJAN indigenisation portal, defence industrial corridors | Up to 74% automatic; above by approval |
| Logistics and warehousing | National Logistics Policy 2022, PM Gati Shakti, multimodal logistics parks, dedicated freight corridors | 100% FDI automatic route |
| Pharmaceuticals and life sciences | PLI for pharma, Bulk Drug Parks, Drugs and Cosmetics Act licensing, clinical trial regulatory framework | 100% FDI automatic route (greenfield) |
| IT, AI and digital services | India AI Mission, IT Amendment Rules 2026, DPDPA 2023, STPI and SEZ benefits | 100% FDI automatic route |
Sectoral caps, conditions and incentive eligibility are subject to change. FDI route analysis and incentive applicability are confirmed case by case.
| Metric | Figure |
|---|---|
| Bilateral merchandise trade (2025-26) | Approximately USD 27 billion |
| Bilateral trade target (2030) | USD 54 billion |
| India imports from Korea (2025-26) | Approximately USD 21 billion |
| India exports to Korea (2025-26) | Approximately USD 6 billion |
| Cumulative Korean FDI into India (to March 2026) | Approximately USD 7 billion |
| India-Korea CEPA in force | Since 1 January 2010 |
| Revised India-Korea DTAA royalty and FTS rate | 10% |
| Revised India-Korea DTAA dividend rate | 15% |
Figures are drawn from RBI, DPIIT, IBEF and bilateral sources. Trade and investment figures are approximate and subject to annual revision.
The South Korea Desk provides Indian legal counsel to Korean enterprises and investors across market entry, entity setup, FDI and FEMA compliance, semiconductor and electronics projects, automobile and e-mobility manufacturing, shipbuilding and maritime ventures, green energy and steel projects, employment structuring under the Labour Codes, data protection under the DPDPA, AI governance, dispute resolution and regulatory compliance. It coordinates with the enterprise’s Korean advisers and in-house teams on all India-law questions.
The India-Korea relationship is designated a Special Strategic Partnership, guided by a Joint Strategic Vision for 2026-2030 adopted following the 2026 state visit. The India-Korea Comprehensive Economic Partnership Agreement (CEPA), in force since 1 January 2010, governs trade in goods, services and investment; upgrade negotiations to modernise it are ongoing. The revised India-Korea Double Taxation Avoidance Agreement (in force 2016) governs taxation of cross-border income. Korea Plus, established in 2016 within Invest India under the Department for Promotion of Industry and Internal Trade, facilitates and tracks Korean investment. The India-ROK Industrial Cooperation Committee anchors collaboration in semiconductors, advanced manufacturing, e-mobility and green energy.
Most commercial activities are open to 100% foreign direct investment under the automatic route, requiring no prior government approval, provided the investment falls within sectoral caps and satisfies FEMA conditions. Government route approval is required for restricted sectors such as defence above threshold, multi-brand retail and media. Entity structuring, FDI reporting via Form FC-GPR on the FIRMS portal, and annual FLA returns are mandatory regardless of the route.
Korean enterprises processing personal data in India must comply with the Digital Personal Data Protection Act 2023 and the DPDP Rules 2025. The framework requires a lawful basis for processing, honouring of data principal rights, and intimation of a personal data breach to the Data Protection Board and affected Data Principals without delay, followed by a detailed report within 72 hours under Rule 7. Cross-border transfer operates on a negative-list model under Section 16, Consent Manager registration applies under Rule 4, and enterprises designated Significant Data Fiduciaries carry additional obligations. Monetary penalties under the DPDPA extend upto Rs 250 crore. The Inviolum™ framework structures this compliance alongside any home-jurisdiction obligations.
Yes. The Desk advises on the India-law framework for Korean participation in semiconductors and electronics — India Semiconductor Mission incentives, fabrication and assembly-test-mark-pack projects, the Design Linked Incentive scheme, equipment supply and technology licensing contracts, transfer pricing documentation, IP co-ownership structuring, and SEZ and STPI benefits. It also covers electronics manufacturing under the relevant production-linked incentive schemes and component ecosystem development.
Shipbuilding and maritime work covers greenfield shipyard development, joint-venture and technology-transfer structuring, Maritime India Vision alignment, Sagarmala participation, Maritime Development Fund interface, and equipment supply and classification matters. Automobile and e-mobility work covers manufacturing entity setup, the production-linked incentive schemes for automobiles and advanced chemistry cell batteries, the FAME framework and successor schemes, supplier and component agreements, dealer and distribution structuring, and technology licensing. Both engage FEMA current-account rules on royalty and technical service fees, transfer pricing under the Income Tax Act, and withholding tax under the revised India-Korea DTAA.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing.
Share the proposed activity, parties, business stage, location and immediate decision for a confidential preliminary scope discussion.