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Korea Inc. makes push in Global South with president's India-Vietnam trip

Published: 20 Apr. 2026, 18:22 Updated: 20 Apr. 2026, 19:44

Hyundai Motor Group Executive Chairman Chung Euisun, third from right, visits one of the company's plants in Chennai, India, on Jan. 14. [HYUNDAI MOTOR]

Korean business leaders are using President Lee Jae Myung's visits to India and Vietnam this week to accelerate their push into the Global South in search of new growth engines.

Some 250 executives — including Samsung Electronics Executive Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Euisun Chung, LG Group Chairman Koo Kwang-mo, Posco Holdings Chairman Chang In-hwa and HD Hyundai Chairman Chung Ki-sun — attended a Korea-India business forum in New Delhi on Monday, according to industry officials.

President Lee’s trip to India and Vietnam, which runs from Sunday to Friday, comes as deepening U.S.-China tensions push Korean companies to diversify supply chains and investment destinations.

India and Vietnam, which are home to large populations, rising consumption and growing industrial bases, are being increasingly eyed by Korean businesses as alternatives to China as manufacturing hubs.

Companies whose executives are accompanying the Korean president are expected to announce a series of partnerships and investments during his trip, with early moves already emerging in steel, autos, shipbuilding and energy.

Posco Holdings announced Monday that it had signed a joint venture agreement with India’s largest steelmaker, JSW Steel, to build an integrated steel mill with an annual capacity of 6 million tons. The project, in which the two companies will hold equal stakes, is targeted for completion by 2031.

The deal marks a long-sought entry by Posco into India after years of attempts dating back to 2004. Demand for steel in India has grown at more than 10 percent annually in recent years, driven by urbanization and manufacturing expansion.

HD Hyundai Chairman Chung Ki-sun, second from left, visits one of the company's shipyards in Danang, Vietnam, on March 26. [HD HYUNDAI]

“By combining Posco’s steelmaking technology with JSW’s local competitiveness, we aim to contribute meaningfully to industrial development in both countries,” a company executive said.

Automakers are also doubling down on India, where low vehicle ownership rates point to significant growth potential.

Hyundai Motor has expanded its manufacturing footprint with plants in Chennai, Anantapur and Pune, giving it an annual production capacity of about 1.5 million units.

In the first quarter, Hyundai Motor and Kia sold a combined 250,903 vehicles in India, a quarterly record that underscores the market’s growth trajectory.

Analysts say India’s high import tariffs effectively force local production, while geopolitical tensions make it difficult for Chinese competitors to expand, leaving established players better positioned to strengthen their foothold on the subcontinent.

Korean shipbuilders are also stepping up their presence, with HD Hyundai reviewing plans to build a new shipyard in India’s Tamil Nadu state and strengthening ties with Cochin Shipyard. The group has also expanded operations in Vietnam, where it is increasing production capacity.

HD Hyundai’s strategy is aimed at boosting competitiveness in segments such as tankers and bulk carriers, where Chinese firms have dominated, while improving profitability through a broader production base.

Korean energy companies are also eyeing opportunities in both nuclear and renewable projects. Vietnam’s plan to build four nuclear reactors in Ninh Thuan province has drawn particular attention with an investment price tag of approximately 30 trillion won ($20.4 billion).

One reactor project has already been awarded to Russia, while a consortium of Korean firms is a leading contender for another.

Renewable energy developers are also targeting the offshore wind sector in Vietnam, which is aiming to increase offshore wind capacity from 6 gigawatts in 2030 to 139 gigawatts by 2050.

Korean cable maker LS Cable & System, which already operates plants in Ho Chi Minh City and Hai Phong, is considering additional production facilities in the country.

“Markets in the Global South not only offer strong growth potential but also serve as key production bases for exports to Europe,” a company representative told the JoongAng Ilbo.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NAM YOON-SEO [[email protected]]