An agreement between two parties ( one Indian and another South Korean) is to be Notarized in India. The authorized signatory ( a foreign nation) of the first party is in South Korea. I suppose Notarization requires physical presence of both the parties in presence of a Notary. So in this case what should be done? Can a PoA be sent by the first party to a friend here in India, who signs in front of Notary on the behalf of the first party?
There is no reason that both parties must be present in front of a notary at the same time. It is common place to have multiple signature pages executed at different times by different people in different places. The guy in India signs his page of the contract in the presence of a notary in India, and the guy in South Korea signs his page of the contract in the presence of a notary in South Korea. I have parties sign contracts like that several times a week. If an original copy needs to be maintained for some reason, the original can be mailed or sent by FedEx or the equivalent.
Also, your obsession with notarization makes no sense and suggests that you really have no understanding of contract law or business practice.
The only documents that are routinely notarized are: conveyances of real estate, mortgages, wills, durable powers of attorney, trusts, living wills, and affidavits in court cases or real estate records. Notarization hasn't been important in commercial agreements since the 19th century and is usually dispensed with entirely.