SEOUL, KOREA - Korean President Park Geun-hye held a summit meeting with Indian Prime Minister Manmohan Singh in New Delhi on January 16 and adopted a joint statement intended to expand the bilateral relationship further.

 

 

The two leaders agreed to revise the existing Double Taxation Avoidance Convention so that Korean companies doing business in India could pay less tax than before.

 

With the revision of the convention, it is expected that the tax rate on dividends for the Korean companies with operations in India would be reduced to 10 percent from current 15 percent.

 

The two summits also were in agreement in upgrading the Korea-India Comprehensive Economic Partnership Agreement (CEPA) that went into effect in 2010. Through ministerial-level meetings, the range of items subject to no tariff duties would be enlarged, especially for service items and investment goods. In order to increase the area of mutual cooperation, private-level talks such as CEO forums will also be held.

 

Dr. Singh said in a media statement after the meeting with his Korean counterpart, "President Park and I have agreed to set up a CEOs Forum comprising captains of the industry and commerce from both countries to provide us with new ideas for deepening our economic collaboration."