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🇰🇷 South Korea /Economy & Trade

President Lee, Argentina's Milei agree on joint lithium investment, oil imports from next year

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • President Lee Jae-myung and Argentinian President Javier Milei agreed to jointly invest in lithium exploration and mining.
  • South Korea plans to begin importing crude oil from Argentina starting next year.
  • The agreements aim to stabilize supply chains for key minerals and diversify South Korea's energy sources.

South Korean President Lee Jae-myung and Argentinian President Javier Milei have agreed to pursue joint investments in lithium exploration and mining across the value chain. The agreement, reached during a summit in Buenos Aires, aims to strengthen cooperation in critical minerals essential for future industries.

This summit has established a cooperation framework for critical mineral supply chains.

— Wi Sung-rakNational Security Advisor, briefing reporters on the outcomes of the summit.

National Security Advisor Wi Sung-rak stated that the summit established a cooperation framework for critical mineral supply chains. Both nations will share information on policies and investment systems through a memorandum of understanding on critical mineral cooperation. Argentina, the world's third-largest lithium producer with the fourth-largest reserves, offers significant opportunities for South Korean companies.

Our companies will begin importing Argentinian crude oil next year, based on a trial introduction this year.

— Wi Sung-rakNational Security Advisor, detailing the energy cooperation agreement.

The agreement also paves the way for South Korea to diversify its oil import sources. Following a trial import of Argentinian crude oil this year, the country plans to commence regular imports next year. This move is expected to reduce reliance on Middle Eastern oil and enhance energy supply resilience against geopolitical uncertainties.

This move will broaden our oil import sources to South America, reducing reliance on the Middle East and increasing our response capabilities to energy supply uncertainties.

— Wi Sung-rakNational Security Advisor, explaining the strategic importance of importing oil from Argentina.

Further economic cooperation includes the finalization of a double taxation prevention treaty, which will reduce tax burdens for South Korean companies operating in Argentina and increase investment predictability. Both nations also agreed to expedite the resumption of negotiations for a South Korea-Mercosur trade agreement to expand market access for South Korean businesses in South America. Additionally, they plan to reactivate joint economic and energy committees to manage the outcomes of the summit.

Milei said he is a 'fan of Korean cosmetics.'

— Wi Sung-rakNational Security Advisor, sharing an anecdote about Argentinian President Milei's interest in South Korean products.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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