Following in the footsteps of steel major Posco, South Korean companies have evinced a keen interest in the Indian market, proposing a plethora of investment proposals worth $2.8 billion in steel, mines and the power sector.
"We have been flooded with investment proposals from South Korean companies. Besides, Posco's proposed $12- billion investment in a steel project in Orissa, major industrial houses have committed an investment to the tune of $2.8 billion," Indian Ambassador to South Korea, N Parthasarathi told a media team from Orissa last week.
Of $2.8 billion, around $750-million investment had come to the country, he said.
According to Parthasarathi, "Six to eight Korean companies have approached us and inquired about the business prospects in Orissa."
The industries mainly belonged to ancillary sector of steel and mines, he said.
The Ambassador said while some reputed companies were planning expansion in India, a few companies were getting ready to take take part in various bidding process.
"Korea Electricity power company has already hinted that it would take part in bidding for seven mega power projects planned by India government. Electronic majors such as LG and Samsung are also planning to increase their capacity in the country," he said.
The Indian embassy has been receiving enquiries from companies such as construction firm Doosan and retail chain Walmart and Lottemart.
"As soon as Indian government take a decision on foreign direct investment in retail sector, some Korean companies would enter the Indian market," an embassy official said.
Sources said while car manufacturer Hyundai was going to double its capacity in India, Samsung engineering was also interested to be part of the construction boom in the country.
At present, bilateral trade between two countries was $6 billion which is expected to touch $10 billion by 2008 and targetted to reach $15 billion by 2010.
Referring to Posco project, Parthasarathi said, "The project will strengthen bilateral relations between two countries. A cell in Prime Minister's Office at New Delhi is following the development and support project."
He said the project, which was Korea's biggest ever overseas investment, would benefit the whole region.
"It is mindboggling to imagine how Posco will help in the region's development. Besides this investment, a whole lot of auxilliary activities will follow. That amounts to around $12- to $15-billion investment," he said.
The state government must demarcate areas for setting up small and medium enterprises and this area should be given special economic zone status, he said.
Dismissing apprehension that the company was interested in only iron ore, he said, "nobody is taking away nothing. An equal amount of iron ore is being exported against same quantity of import."
Parthasarathi said the Haryana government was interested in attracting investment by South Korean companies in the state.
"Haryana Chief Minister was here two months ago. He said iron ore reserve was traced from the state and his government would woo investors in steel sector shortly."
He said Posco had the technology to make optimum use of resources and they were doing it at their Pohang facility. Posco, he added, had already invested $1 million and the project would be completed as scheduled.
"It is a win-win situation for both countries. South Korea could become India's major trading partner in the next 10 years," the Indian ambassador said while pointing out that Posco's investment was crucial to move forward in this direction.
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