"We are two major Asian democracies. We have boundless possibilities for cooperation in India's economic transformation and our shared progress," Modi said at a banquet hosted in his honour by South Korean President Park Geun-hye.
"Our destinies are linked with the future of Asia and the Pacific. We will prosper when the region is peaceful and our sea lanes are secure and free. We know that we must be secure in our cyber world and safe in our physical world," he said.
"Your commitment to the relationship with India is a source of strength for us. Each time we have spoken, you have shown great awareness of our big opportunities; and, you have spoken with clarity about the roadmap ahead," he said.
"Today, in recognition of our responsibility, we have elevated our relationship to a Special Strategic Partnership," Modi said.
He said Korea was part of India's daily life with Indian people using Korean phones, Korean cars, Korean computers to Korean games.
"But, we also know that Koreans are more than brilliant engineers. They sing and dance well, too. When cricketers in India celebrate their victory in Gangman style, you know that Korea is now firmly on Indian minds and limbs," he said in a lighter vein.
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