South Korea’s major conglomerates are ramping up efforts to expand into India, positioning the country as a key player in the evolving global supply chain. With ongoing uncertainties in South Korea’s primary export markets—the United States and China—India and other developing economies in the Global South are gaining traction as strategic alternatives for mitigating risks.
LG Group Chairman Koo Kwang-mo spent four days in India starting Feb. 24, visiting local research and development (R&D) centers, production plants, and sales sites. His visit marked a shift from traditional destinations such as the U.S. and Europe, making India his first overseas business trip of the year. It was also his first visit to the country since taking the helm at LG in 2018.
Over the past year, top executives from South Korea’s leading corporations have made successive trips to India. Samsung Electronics Executive Chairman Lee Jae-yong visited the company’s Mumbai office in July, while Hyundai Motor Group Executive Chairman Chung Eui-sun traveled to India twice, in April and October. Lotte Group Chairman Shin Dong-bin also chose India for his first overseas business trip of the year last month—his first visit there in nearly a decade.
India is emerging as a viable alternative to China, particularly amid escalating trade tensions between Washington and Beijing and the potential re-election of former U.S. President Donald Trump. With a population surpassing 1.4 billion and a steadily expanding working-age demographic—68% of the total—the country presents an attractive investment landscape. The Indian government is actively courting foreign capital, further boosting its appeal.
The South Korean government is stepping up support for companies seeking to expand into the Global South to offset the impact of U.S. tariff policies. While India is still negotiating trade terms with Washington, it faces fewer trade frictions than China.
Hyundai Motor, a target of U.S. tariffs, is positioning India as a strategic export hub to strengthen its presence in emerging markets. Hyundai Motor India Ltd. (HMIL) launched an initial public offering (IPO) in October, the largest in Indian stock market history, with plans to use the proceeds to localize electric vehicle production and enhance R&D capabilities for next-generation mobility technologies.
LG Electronics is also preparing to list its Indian subsidiary, with other affiliates planning further investments in the country. According to Bloomberg, LG Electronics has begun investor presentations and is expected to raise between $1 billion and $1.5 billion through its IPO. CJ Logistics has been pursuing an IPO for its Indian subsidiary, CJ Darcl Logistics, since 2023.
South Korean companies are also expanding into India’s steel sector. POSCO Group partnered with India’s largest steelmaker, JSW Group, last year to establish an integrated steel mill and collaborate on battery materials and renewable energy. Meanwhile, South Korean shipbuilders are reportedly in discussions with the Indian government on potential partnerships.
As corporate interest in India grows, economic organizations are working to strengthen bilateral investment and trade ties. The Korea International Trade Association (KITA) is establishing an India Committee under a new memorandum of understanding (MOU) with the Confederation of Indian Industry (CII). The Korea Trade-Investment Promotion Agency (KOTRA) is also dispatching large-scale trade delegations to India and other key export markets across the Association of Southeast Asian Nations (ASEAN).
