South Korea, Brazil to boost trade, supply chain cooperation

South Korean President Lee Jae-myung and Brazilian President Luiz Inácio Lula da Silva have declared 2026 the inaugural year for advancing their "Korea-Brazil Strategic Partnership." Following a summit in Brasília, the leaders adopted a joint statement and a "4-Year Action Plan," building on a previous agreement from February. This signifies a concrete vision for future cooperation between the two nations.

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We deeply agreed that in an era of increasing uncertainty in the trade environment, the trade agreement between Korea and Mercosur is an important task that can no longer be postponed.

A key focus of their discussions was the urgency of a trade agreement between South Korea and Mercosur, the South American common market. President Lee stated, "We deeply agreed that in an era of increasing uncertainty in the trade environment, the trade agreement between Korea and Mercosur is an important task that can no longer be postponed." He believes this pact will open new opportunities for Korean companies in the South American market and for Brazilian firms in Asia, using South Korea as a hub.

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We agreed to expand cooperation across the entire lifecycle of critical mineral supply chains between companies and institutions of both countries.

Beyond trade, the leaders committed to deepening cooperation in critical minerals supply chains, clean energy, and energy transition. They also agreed to explore new avenues in defense and future mobility, including the potential for components from Korean companies to be integrated into Brazilian C-390 transport aircraft. Discussions extended to the aerospace and space industries, with plans to simplify launch procedures and share satellite data. Furthermore, they aim to foster semiconductor collaboration, creating a mutually beneficial model for Brazil's industrial competitiveness and South Korea's stable production base.

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The 'Korea-Mercosur Trade Agreement' will expand opportunities for our companies to enter the South American common market, and provide Brazilian companies with new opportunities to enter the Asian market using Korea as a base.