India and South Korea signed a Memorandum of Understanding (MoU) between India's Ministry of Micro, Small and Medium Enterprises and South Korea's Ministry of SMEs and Startups during President Lee Jae Myung's visit. The agreement establishes a framework for cooperation, trade and innovation in the Micro, Small and Medium Enterprises (MSME) sector and seeks sustained dialogue on key regulatory and operational issues. It aims to deepen mutual understanding of each nation’s MSME ecosystem and to enhance engagement between business stakeholders and policymakers.

The MoU sets out mechanisms for exchange of information and experts, the sharing of best practice, business matchmaking and technical and economic collaboration to boost investment and market access for small firms. It supports joint initiatives to strengthen linkages between MSMEs of both countries and envisages programmes to facilitate technology transfer and digital adoption. Officials indicated that the partnership will promote capacity building and innovation across supply chains and will seek to mobilise both public and private resources.

In addition, India and South Korea exchanged a joint declaration to resume negotiations to upgrade the Comprehensive Economic Partnership Agreement (CEPA) and to implement the India–Korea Digital Bridge, a framework for cooperation in artificial intelligence, semiconductors and information technology. The prime minister described the steps as intended to convey a message of peace and stability in a period of global tension and to build foundations for the next decade. Leaders emphasised that the digital initiative will deepen collaboration on advanced technologies and supply chain resilience.

The pact marks a significant step in bilateral economic cooperation and reiterates a shared commitment to empower MSMEs as drivers of inclusive growth, innovation and employment generation. Officials said the arrangement will enable sustained institutional contact and practical support measures to enhance trade, investment and digital economic collaboration. Both sides will now proceed to detailed workplans and expert exchanges to translate the agreement into concrete outcomes.