Civil nuclear commerce is one of the main items in India’s trade basket out of the US$30 billion bilateral trade target with South Korea by 2014. This has been amply expressed in the 6th India-Korea Joint Committee Meeting held on 17-19 June during Indian Foreign Minister SM Krishna’s recent visit to Seoul. Krishna and his Korean counterpart Yu Myung-hwan have agreed to launch negotiations; Inter-Governmental Agreement on Peaceful Uses of Nuclear Energy. While India’s civil nuclear initiative with S Korea seems, from the outside, a means to generate 20GWe by 2020; a deeper understanding would reveal the emerging strong synergy between New Delhi’s ‘Look East Policy’ and Seoul’s ‘New Asia Initiative’. This convergence of strategic interests is discernible in Krishna’s proposed six-steps for ‘India-South Korea Strategic Partnership’ that has been reciprocated by Choi Kyung-hwan, Korea's Minister of Knowledge Economy, saying that “India being not a member of the Non-Proliferation Treaty does not pose any problem.”

During the last few years, as part of its effort to ensure energy security, India has taken initiatives with dozen countries including the US, Canada, UK, Mongolia, Russia, etc. to access nuclear fuel and technology. Its ambitious plan to enhance nuclear power generation up to 40,000MWe by 2035 necessitates reaching out to uranium-rich and technologically advanced countries to garner cooperation. India’s thorium fuel cycle programme has been recognized as advanced.

On the other side, South Korea the 6th largest nuclear exporter is endowed with advanced nuclear technology. Recently, the South Korean Consortium won a US$20 billion contract in UAE, to construct four nuclear reactors. In addition, the Korean government is installing advanced nuclear power reactors to meet its increasing demand of electricity and hope to produce 27.3GWe by 2020, and 35GWe by 2030. Therefore, there is strong reason for both countries to work together.

The initial steps in India-Korea nuclear cooperation started only after Indo-US nuclear negotiations. South Korea’s state-owned Korea Electric Power Corporation (KEPCO) and Nuclear Power Corporation of India Ltd. (NPCIL) signed a MoU in August 2009 for bilateral cooperation on technical exchange of data, experience and joint work. Particularly, KEPCO is keen to export its APR-1400 (Advanced Pressurized Water Reactor) to India. In this regard, it has been engaged with the NPCIL in a joint study on ‘licensibility and constructability’ of APR-1400s in India.

As an initial step for inter-government negotiation, Korea seems to be following closely the nuclear liability issue that India is in the process of settling. Seoul’s future course of nuclear commerce with India would be based on the parameters New Delhi will chalk out. In the event of a nuclear incident inside or outside the national territory, it is of prime importance how quickly the crisis is handled, channeling liability and compensation legislation within the jurisdiction. Generally member countries are obliged to adhere to principles of the convention either by implementing the guidelines set or by laying down their own regime to prevent and compensate in case of a nuclear damage. South Korea is a prominent example which is neither a party to the Paris Convention of 1960 nor to the Vienna Convention of 1963. But it has its own legislative regimes which fulfill those requirements commensurate to these conventions. The ‘Act on Compensation for Nuclear Damage’ imposes strict liability on operators of the nuclear installations. Like Japan, Germany, and Switzerland, South Korea has fixed unlimited liability on the operators to prevent sudden bankruptcy in the wake of a nuclear accident.

Since the nuclear liability bill is significant and sensitive, it is important to see how India’s nuclear liability regime settles, whether it follows the Paris and Vienna Conventions or places its own regime. Or will it follow a no fixation policy like China? Fixation and implementation of any stringent liability by India may impinge upon the interests of a vast majority of potential parties keen to initiate nuclear commerce with New Delhi.

However, India-Korea civil nuclear cooperation will be a win-win approach. Historically, India’s diplomacy has been limited in East Asia. With such a deal in place, India can conduct better nuclear diplomacy through expanding civilian nuclear network in this region. South Korea has shown its willingness to share all benefits with India in this field, and if it is accomplished, would usher a new era in India-Korea relations.

Furthermore Asia has emerged as a prominent hub in the world market where large number of nuclear exporters and importers are located. India and South Korea have the potential and will to become the next generation nuclear energy tycoons along with China and Japan. Both countries would certainly reap strategic as well as economic benefits out of the nascent civil nuclear cooperation. At the same time, being the responsible democratic countries, New Delhi and Seoul are expected to be the role models in the domain of civil nuclear cooperation.