President Lee: "Build core mineral, supply chain cooperation with South America... Mercosur trade agreement needed"

President Lee Jae-myung is set to embark on a three-nation tour of South America, including Brazil, Chile, and Argentina, with a focus on deepening economic ties and strategic partnerships. Ahead of his visit, Lee outlined his vision for enhanced cooperation in critical minerals and supply chains, emphasizing the need for a robust Mercosur trade agreement and the modernization of the existing Korea-Chile Free Trade Agreement (FTA).

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South American member states are global leaders in agriculture, food production, energy, and critical minerals, while Korea is a global leader in advanced manufacturing, digital technology, shipbuilding, batteries, and innovation. By combining these strengths, we can build resilient value chains that benefit both regions.

In a written interview with the South American Spanish-language news agency EFE, Lee described the current relationship between South Korea and South America as entering a "new phase." He pointed to the complementary strengths of both regions: South America's leadership in agriculture, food production, energy, and critical minerals, and South Korea's expertise in advanced manufacturing, digital technology, shipbuilding, batteries, and innovation. Lee believes that combining these strengths can create resilient value chains beneficial to both sides.

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As protectionism spreads, geopolitical tensions rise, supply chains are disrupted, and concerns about energy security grow, each country needs reliable partners and trade based on clear norms and mutual trust.

Lee stressed the importance of reliable partnerships and trade based on clear norms and mutual trust, especially amid rising protectionism, geopolitical tensions, and supply chain disruptions. He specifically highlighted the growing strategic significance of South America's critical mineral sector due to the rise of AI and advanced manufacturing. Lee stated that South America possesses essential resources for future industries, while South Korea offers advanced technology, industrial know-how, and investment capabilities, enabling them to jointly build resilient supply chains and create quality jobs.

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South America possesses the resources essential for future industries, while Korea has advanced technology, industrial know-how, and investment capabilities. Together, we can build resilient supply chains, foster new industries, and create quality jobs that benefit both regions.

The President also identified the modernization of economic structures as a key objective, including updating the Korea-Chile FTA, South Korea's first FTA signed in 2004. He noted opportunities to incorporate new areas such as digital trade, environmental cooperation, labor standards, gender equality, and innovation into the agreement. Lee expressed his goal of fostering a relationship that extends beyond economic exchanges to encompass deep social interaction and cooperation for future generations, noting the expanding interest in South Korea beyond K-pop and dramas to include food, beauty, technology, and education.

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The relationship between Korea and South America is now entering a new phase. Future cooperation should not be defined simply by exchanging natural resources for manufactured goods, but by creating shared value through innovation, investment, technology, and talent.