"Korea will get back on the right track of positive growth of 2 per cent next year and 4 per cent in 2000," he said at a meeting organised by the Confederation of Indian Industry (CII). The meeting was part of a roadshow organised for the five-day industrial trade fair, 9th IETF '99, beginning in New Delhi on February 12. Korea will be the partner country and Maharashtra the partner state in that event.

Drastic reduction of imports due to decreased income, the devalued Korean won, low interest rates and oil prices were responsible for the trade surplus, Hahn said. Despite the recession, the country's trade with India has been growing at 40 per cent in exports. Bilateral trade touched $2 billion a year and Korean investment clocked $1.73 billion. "This puts Korea in the 6thposition among investors in India," he added.

Hahn said that the present global slowdown and economic problems back home would affect trade between the two countries though this would be "marginal and insignificant."

Hahn said that despite the pain of reforms and restructuring, Korean investors kept their commitments in southwest Asia with unflagging determination evidenced by Hyundai and Daewoo. "The vast range of commodities which has brought about a technological revolution will revitalise the Indian economy," he added.

State industries secretary Yashwant Bhave said that Maharashtra's participation in IETF would highlight its investment potential to domestic and international investors. The state, he added, had attracted 11 per cent of the total investment planned in the country.

Bhave said that the state was on its way to becoming one of the most rapidly developing zones in India. With over 1,100 approvals for foreign direct investment proposals, Maharashtra has become the highest absorber ofFDI.

Pran Talwar, chairman, trade fair, CII said that Maharashtra would occupy 1,500 sq mt as partner space at the Delhi meet. Apart from the list of over 30 countries, the Indian representation would include Tisco, Telco, L&T, Steel Authority of India, Escorts, Kirloskars, Godrej & Boyce, Greaves, TVS, Voltas and the Hero group.