The agreement for South Korea complemented a broad list of existing bilateral and multilateral free trade agreements concluded under Korean President Roh Moo-hyun.  As far as India is concerned, the negotiations coincided with the Look East initiative of Manmohan Singh, then India`s incumbent prime minister, who promised greater regional integration between India and East Asian markets. The agreement will ease restrictions on foreign direct investment. Companies can own up to 65% of a company in the other country.  Both countries avoided problems of agriculture, fishing and mining and decided not to reduce tariffs in these areas. This is due to the very sensitive nature of these sectors in the countries concerned.  In 2008, trade between India and South Korea amounted to $15.6 billion. This is a significant increase from 2002, when total trade was $2.6 billion.  The Korea Institute for International Economic Policy estimates that the agreement will increase trade between the two countries by $3.3 billion.
 Another agreement was signed to honor a common stamp in memory of Princess Suriratna (Queen Hur Hwang-ok), a legendary princess of Ayodhya, who went to Korea in 48 AD and married King Kim-Suro. A large number of Koreans attribute their filiation to the princess. In January 2005, the two sides established a joint task force to assess the feasibility of a free trade agreement between the two nations. Over the next four years, Joint Study Group reviewed the $7.1 billion in trade between the two nations and negotiated an agreement that respected the weaknesses and economic strengths of the two countries` markets. Rahul Khullar, India`s trade minister and member of the Joint Study Group, says such cooperation took place during discussions on the agricultural sector, which is particularly weak in South Korea but is booming in India.  During Prime Minister Narendra Modi`s visit, India and South Korea on Friday signed seven agreements aimed at improving cooperation in key areas such as infrastructure development, media, start-ups, and the fight against cross-border and international crime. . . .