India and South Korea are all set to strengthen bilateral cooperation in the MSME sector, as a Memorandum of Understanding (MoU) was signed between the Ministry of Micro, Small and Medium Enterprises and South Korea’s Ministry of SMEs and Startups on April 20, 2026, during the visit of President of the Republic of Korea Lee Jae Myung to India. 

This partnership marks a significant step towards deepening India-Korea economic cooperation, as the pact provides a structured framework for collaboration between the two Ministries, opening avenues for dialogue on key MSME-related issues, mutually beneficial opportunities and closer engagement between MSME stakeholders in both countries. The partnership also underscores the shared commitment to empowering MSMEs as key drivers of inclusive growth, innovation, and employment generation.

Apart from this, this agreement will boost trade and investment by fostering cooperation through the exchange of information and experts, sharing of best practices, business matchmaking, and technical and economic collaboration. It will also support joint initiatives to strengthen linkages between MSMEs of both countries.