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🇰🇷 South Korea /Elections & Politics

President Lee calls for evolving Korea-Chile FTA, signs mineral resources MOU

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • South Korean President Lee Jae-myung called for the evolution of the Korea-Chile Free Trade Agreement (FTA) to reflect current economic realities.
  • The president highlighted the need to update the 2004 FTA to encompass digital trade, AI, clean technology, and resilient supply chains.
  • During the visit, both nations will sign a Memorandum of Understanding (MOU) on mineral resources to stabilize global supply chains for critical minerals like lithium and copper.

South Korean President Lee Jae-myung is advocating for a modernization of the Korea-Chile Free Trade Agreement (FTA), emphasizing that the pact, established in 2004, must evolve to mirror contemporary economic landscapes. In a written interview with EFE news agency prior to his visit to Chile, President Lee stated, "Today's economy is being reshaped around digital trade, artificial intelligence, clean technology, resilient supply chains, and the transition to carbon neutrality."

Lee stressed that the FTA, which was South Korea's first, played a crucial role in diplomatic relations. He believes the agreement needs adjustment to account for "dramatic changes" that have occurred since its inception. To achieve this, he proposed that both countries reactivate the FTA's Free Trade Committee and advance discussions on modernizing the pact. This modernization, he emphasized, should aim not only to revise trade norms but also to foster business opportunities, support innovation, and strengthen cooperation in new industrial sectors. He also added that labor standards and gender equality should be included in the modernized agreement.

Today's economy is being reshaped around digital trade, artificial intelligence, clean technology, resilient supply chains, and the transition to carbon neutrality.

— President Lee Jae-myungExplaining the need to update the Korea-Chile Free Trade Agreement.

During President Lee's official visit, South Korea and Chile are set to sign a Memorandum of Understanding (MOU) focused on mineral resources. The primary objective is to collaborate on stabilizing the global supply chains for critical minerals. Chile, possessing the world's largest reserves of lithium and copper, and South Korea, with its stable demand and advanced industrial base, are well-positioned to create a competitive value chain. This partnership is expected to span from mineral development and processing to advanced manufacturing.

President Lee arrived in Santiago, the capital of Chile, after concluding a three-day state visit to Brazil. His itinerary in Chile includes a dinner with the Korean community and a summit with Chilean President José Antonio Kast on July 30. This visit underscores a commitment to strengthening economic ties and strategic partnerships between the two nations.

The goal is to cooperate to stabilize the global supply chains for critical minerals.

— President Lee Jae-myungDescribing the objective of the mineral resources MOU between South Korea and Chile.
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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