Jul. 27 – An agreement for peaceful cooperation in the use of nuclear energy was signed between India and South Korea in the latter’s capital city of Seoul on Monday, laying the legal foundation for South Korea to enter the Indian energy market, South Korean officials have said.
Secretary of India’s Department of Atomic Energy Srikumar Banerjee and the South Korean Minister for Foreign Affairs and Trade Kim Sung-Hwan signed the agreement after a meeting at the office of the South Korean President Lee Myung in Cheong Wa Dae. On July 24, Indian President Pratibha Patil arrived in Seoul to meet with President Lee to discuss the agreement.
Patil’s next stop will be Mongolia. In her view South Korea and Mongolia are considered “key pillars to India’s ‘Look East Policy’ as well as India’s growing integration with the Asia-Pacific region,” according to reports.
Approximately 35 percent of the electricity in South Korea is generated by nearly 20 nuclear plants. Despite the recent Fukushima crisis in Japan, the country is confident about exporting its nuclear technology as a new means to support its economy.
Lee’s office said that apart from the peaceful use of nuclear energy, the agreement includes the trading of nuclear equipment and spare-parts, construction of nuclear stations, infrastructure technology and application research. During the meeting, Lee called for Patil’s support in ensuring the construction of a US$12 billion steel plant, which was planned by South Korean steel giant Posco for Orrissa on India’s eastern coast. In addition, two agreements were signed concerning cultural exchanges and social security arrangements for Indian professionals working in South Korea.
Sanjay Singh, Secretary (East), Ministry of External Affairs, stated that the two countries “discussed possibilities of cooperation in the peaceful uses of outer space. India looks forward to once again launching Korean satellites on Indian rockets.”
At the moment, India is running 20 nuclear reactors and is building six more. Its plans call for a total of about 40 nuclear stations by 2032.
South Korea is expected to be the ninth country to sign a nuclear energy agreement with India. At present Russian, French, Canadian and U.S. companies dominate India’s nuclear market.
In recent years, South Korean companies have stepped up to compete in overseas markets. In 2009, South Korean companies overpowered U.S., Japanese and French rivals in the construction of four nuclear power plants in the United Arab Emirates, signing up for a total contract of US$18.6 billion.
According to analysts, the new South Korea-India bilateral agreement will benefit both countries, for India intends to broaden its nuclear energy market and South Korea looks to export its expertise.
“South Korea has a lot of technology in energy infrastructure which they can help India with,” said Rajiv Biswas of IHS Global Insight. “It also recognizes India as a key future market. This is a very big opportunity for them to expand into the emerging economies. All in all, it is a very positive deal for both the nations.”
India’s neighbor, Pakistan, however, is seriously concerned over the agreement. It suspects India will make “peaceful use” an excuse to expand its nuclear weapons.
“It is surprising that South Korea which claims to be the victim of North Korea’s nuclear program is itself becoming a party to the expansion of nuclear dual purpose technology,” a senior Pakistani official said.
