South Korean President Lee Jae-myung announced plans to resume trade agreement negotiations with Mercosur and modernize the Korea-Chile FTA in a written interview with Spanish news agency EFE published on the 25th (local time). The president characterized South America as a core supply chain partner for the AI era, citing the region's critical mineral resources and Korea's advanced technology capabilities. Lee made the remarks ahead of a three-nation South American tour covering Brazil, Chile, and Argentina, against a backdrop of rising protectionism and supply chain disruptions globally.
President Lee Announces Mercosur Trade Negotiations and FTA Modernization
President Lee stated in the EFE interview that "Korea-South America relations are entering a new phase," emphasizing that cooperation should evolve beyond simple exchange of manufactured goods and natural resources toward value creation through innovation, investment, technology, and talent. The president outlined plans to resume trade agreement negotiations with Mercosur (Southern Common Market) and modernize existing trade frameworks to reflect AI-era priorities.
Regarding the Korea-Chile FTA originally signed in 2004, Lee said the agreement "was Korea's first FTA, but after over 20 years, we now have an opportunity to modernize it to reflect new agendas such as digital trade, environmental cooperation, labor standards, gender equality, and innovation." The president added that "our goal is clear: to build a relationship between Korea and South America that goes beyond economically successful ties to one deeply rooted in social exchanges and cooperation for future generations."
South America Positioned as AI-Era Supply Chain Partner
President Lee assessed that Mercosur member states possess competitive advantages in agriculture, food production, energy, and critical minerals, while Korea leads globally in advanced manufacturing, digital technology, shipbuilding, batteries, and innovation. "South America holds resources essential for future industries, and Korea has advanced technology, industrial know-how, and investment capacity," Lee stated in the interview.
The president emphasized that combining these strengths could build resilient value chains beneficial to both regions. "Together we can build resilient supply chains, foster new industries, and create quality jobs," Lee said. He noted that as protectionism spreads and concerns grow over geopolitical tensions, supply chain disruptions, and energy security, "trade based on reliable partners, clear norms, and mutual trust becomes even more important."
![President Lee Jae-myung at San Francisco Korean Diaspora Luncheon]()
President Lee Jae-myung delivers remarks at a Korean diaspora luncheon in San Francisco on the 25th (local time). Photo: Yonhap News
President Departs Silicon Valley for Brazil State Visit
President Lee was scheduled to depart Silicon Valley for a state visit to Brazil on the 25th (local time) after completing a venture investment meetup event. The president attended a Korean diaspora luncheon at a San Francisco hotel on the 25th (local time) before departure.
FAQ
What trade agreements did President Lee announce plans to pursue with South America?
President Lee announced plans to resume trade agreement negotiations with Mercosur and modernize the Korea-Chile FTA signed in 2004. In a written interview with Spanish news agency EFE published on the 25th (local time), the president stated the Chile FTA should be updated to reflect new agendas including digital trade, environmental cooperation, labor standards, gender equality, and innovation.
Why did President Lee characterize South America as an AI-era supply chain partner?
President Lee stated in the EFE interview that Mercosur member states possess competitive advantages in agriculture, food production, energy, and critical minerals essential for future industries, while Korea leads in advanced manufacturing, digital technology, batteries, and innovation. The president emphasized that combining South America's resource strengths with Korea's technological capabilities could build resilient value chains and foster new industries beneficial to both regions.
