South Korea, Argentina Agree to Expand Oil Supply to South America

South Korean President Lee Jae-myung and Argentine President Javier Milei have forged a significant agreement to extend oil supply routes to South America, marking a strategic move to diversify energy sources. The summit, held in Buenos Aires, also finalized a double taxation prevention treaty, which will reduce tax burdens for South Korean businesses investing in Argentina.

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This visit will ensure the stable progression of planned oil imports from next year. This is expected to broaden our oil import sources concentrated in the Middle East to South America and enhance our energy supply response capabilities by reducing geopolitical uncertainty.

According to National Security Advisor Wi Sung-rak, South Korea piloted the import of Argentine crude oil this year and plans to begin regular imports next year. "This visit will ensure the stable progression of planned oil imports from next year," Wi stated, emphasizing the agreement's role in broadening South Korea's oil import base beyond the Middle East and enhancing energy supply resilience against geopolitical uncertainties.

The bilateral cooperation will extend beyond oil to include natural gas and nuclear energy, with both countries committed to identifying specific collaborative projects. A memorandum of understanding on critical minerals was also signed, establishing a framework for cooperation in securing essential resources for future industries. Argentina, the world's fourth-largest lithium reserve holder, has reaffirmed its support for South Korean companies involved in lithium exploration and extraction.

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Our companies are pursuing lithium projects, and the Argentine government has reaffirmed its continuous support. We plan to explore opportunities for our companies to expand investments into new critical mineral sectors like copper.

Furthermore, the leaders agreed to expedite the resumption of trade negotiations between South Korea and the Southern Common Market (Mercosur), a bloc led by Brazil and Argentina. This move is expected to open up significant export opportunities for South Korean products to a market of 280 million people. The agreement also includes reactivating economic and energy cooperation committees and pursuing mutual recognition of driver's licenses.

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If the Korea-Mercosur trade agreement is finalized, it will open up smooth export channels for our products to a vast market of 280 million people.