Korea & India to upgrade CEPA, revise tax treatyUpdated: 2014-01-17 11:58:16 KST
President Park's visit to India aims at laying the path for Korean firms to more easily enter the world's second-largest market by population.
One of the most notable accomplishments of the summit talks between President Park and Indian Prime Minister Manmohan Singh on Thursday was the two leaders deciding to quickly upgrade the Korea-India Comprehensive Economic Partnership Agreement, or CEPA, so that it covers not only goods, but also investments and services.
"We promised to do our best towards concluding the upgraing process of the Korea-India CEPA as soon as possible."
The two countries will be holding ministerial level talks on the matter in March.
Both leaders also agreed to revise the tax treaty between the two nations, to reduce the tax burden on Korean and Indian companies operating in each other's countries and to prevent double taxation.
"We believe that will lay an important foundation to enhancing the two countries' business environment and expanding investment."
President Park has also sought an expansion in financial support for Korean firms willing to take part in infrastructure projects in India, part of its five-year development plan, with MOUs having been signed between Korea's EXIM Bank and Indian financial institutions.
POSCO's stalled project to build a steel mill in the Indian state of Odisha looks like it's finally back on track, with President Park securing promises from the Indian government to resolve the obstacles that have been blocking progress for roughly nine years now.
The Korean steel giant was granted an environmental clearance for the 27-hundred acres of land required for the project and also secured a promise from the Odisha state government to grant POSCO a prospecting license for an iron ore mine some 3-hundred kilometers from the steel mill.
"President Park will push on with her sales diplomacy pitch on Friday, taking part in a Korea-India business forum and meeting with the chairman of India's Mahindra Group to call for further investment in Korea.
Eoh Jin-joo, Arirang News, New Delhi."
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