Riding on improved bilateral ties, India-South Korea bilateral trade is all set to touch $10 billion by 2008, South Korean Foreign Affairs and Trade Minister Ban Ki-Moon said here Monday.

Speaking at a meeting organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Ban said economic relations have been the driving force in the development of bilateral relations and the trend would continue.

"Trade volume between the two countries, which stood at less than $1 billion in 1991, has increased to $5.5 billion in 2004. And this is definitely a remarkable achievement," Ban said.

"Given the complementarities of our two economies, we should work harder to further expand our trade volume. I am confident that by 2008, we will accomplish the target of $10 billion in bilateral trade," he added.

The minister also expressed faith in the potential and fundamentals of the Indian economy and described India as an investment hotspot.

"In this regard, steel giant Posco's investment in Orissa bears testimony to the fact that (South) Korea perceives India as an important partner," Ban told reporters.

At present, around 200 South Korean companies are doing business in the Indian subcontinent.

However, the minister said despite this remarkable achievement, India ranks 19th as a trading partner to South Korea and South Korea ranks 12th for India. The three major areas in which India and Korea are working together are automobiles, IT and shipbuilding.

"It is imperative that both the countries intensify economic and commercial exchange on a regular basis such as dispatching business delegations, holding investment seminars, one-to-one business meetings and trade fairs."

Both the countries have established a joint study group with an aim to examine the feasibility of a Comprehensive Economic Partnership Agreement (CEPA).