The two nations also decided to constitute sub-groups to discuss cooperation in the areas of digital trade, supply chain and strategic industrial collaboration.
The issue figured during the 12th round meeting on the up-gradation of the existing comprehensive economic partnership agreement (CEPA), which was implemented in January 2010.
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“Both sides acknowledged India’s bilateral trade deficit, which has risen significantly since the IK CEPA came into force in 2010, and agreed to address the issue within the overall IK (India-Korea) CEPA framework,” the ministry said.
India’s exports to Korea increased 3.31 per cent to USD 6 billion in 2025-26 from USD 5.81 billion in 2024-25. The export growth was negative during 2022-25.
Imports grew 1.38 per cent to USD 21.35 billion in 2025-26 from USD 21 billion in 2024-25.Also read | A blueprint for West Bengal’s evolution from an entrepot to a production hub
The trade deficit widened to USD 15.35 billion in 2025-26, from USD 15.2 billion in 2024-25. The deficit stood at USD 14.71 billion in 2023-24, up from USD 14.57 billion in 2022-23 and USD 9.4 billion in 2021-22.
The ministry said that both sides reviewed the progress achieved so far in the negotiations.
During the current round, discussions were held on trade in goods, trade in services, rules of origin and origin procedures , investment, and sanitary and phytosanitary (SPS) standards.
The negotiations were co-chaired by Kapil Chaudhary, Joint Secretary, Department of Commerce, and Park Geun-oh, Director General for Trade Agreement Policy, Ministry of Trade, Industry and Energy, Republic of Korea.
According to experts, Indian exporters face certain non-tariff barriers in South Korea, including stringent standards, regulations and certification requirements, which make it difficult for Indian goods to penetrate the Korean market.
The two countries aim to double their two-way commerce to USD 54 billion by 2030 from the current USD 27 billion, while ensuring a more balanced trade relationship.
In a CEPA, two or more countries either significantly reduce or eliminate customs duties on the maximum number of goods added between and ease norms to promote trade in services and boost investments.
Generally, review or upgradation exercises of a trade agreement include implementation issues, rules of origin, verification process and release of consignments, customs procedures, further liberalisation of trade in goods, and sharing and exchange of trade data.