Domestic companies are moving beyond supplying aircraft parts to participate in the joint development of next-generation commercial aircraft. Hyundai Motor Group plans to expand its cooperation into green energy sectors such as hydrogen and small modular reactors (SMRs) based on local production capabilities.
At a Korea-Brazil business roundtable held in São Paulo on July 28, seven memorandums of understanding (MOUs) were signed in areas including aerospace, critical minerals, and AI healthcare.
The most notable focus was on next-generation commercial aircraft. Brazilian company Embraer is considering expanding its business from existing 70-120 seat regional aircraft to 150-200 seat mid-size aircraft. Korea Aerospace Industries (KAI) and Korean Air discussed the possibility of joint development with Embraer through separate negotiations.
KAI also signed an MOU with Embraer for cooperation in the commercial aircraft and aerospace sectors. KAI currently supplies wing structures for commercial aircraft and electric vertical takeoff and landing (eVTOL) vehicles, while Korean Air provides fuselage and components. Both companies plan to expand their roles beyond parts supply to include participation from the design and development stages.
Kim Yong-beom, head of the presidential office's policy office, held a briefing at the press center in São Paulo, stating, "Although this is an initial stage, discussions are much more concrete than previous parts supply cooperation," adding, "Our companies are also showing substantial interest." However, the method and scale of participation will likely be finalized after economic feasibility studies and negotiations between companies.
Hyundai Motor, which is on track to achieve annual sales of 200,000 units in Brazil for the third consecutive year, has proposed green vehicles and energy as new pillars of cooperation. Since starting local production in Brazil in 2012, Hyundai has grown to become the fourth-largest automaker in the country with ten subsidiaries.
Before the event, Hyundai Motor Group Chairman Chung Eui-sun responded to questions from reporters about the progress of the Brazilian business, saying, "There is still a long way to go," and noted that "China is also aggressively marketing here." This suggests a need to enhance market competitiveness amid increasing pressure from Chinese companies.
In the critical minerals sector, POSCO Group announced plans to utilize Brazil not just as a source of raw materials but as a hub for supply chain development. POSCO International signed an MOU for rare earth supply chain cooperation with Brazilian mineral company Meteoric Resources. POSCO plans to expand its existing cooperation, which is centered on iron ore, to include strategic minerals like rare earths.
SK Biopharm will collaborate with Brazilian pharmaceutical company Eurofarma on AI-based digital healthcare. The two companies plan to expand their business scope to include digital therapeutics and the use of medical data following their collaboration on epilepsy treatments. Naver is exploring AI care service cooperation with the Brazilian government and aims to establish Brazil as a hub for AI business in Latin America.
Local production investments are also ongoing. LG Electronics began mass production at its refrigerator factory in Paraná this month, while Samsung Electronics plans to strengthen digital transformation cooperation based on its local workforce of about 5,000. Hanwha Ocean aims to expand cooperation with local shipyards and equipment companies based on its experience in participating in Petrobras's floating production, storage, and offloading (FPSO) projects.
K-beauty companies are also accelerating their efforts in the Brazilian market. According to Amorepacific, the import value of Korean cosmetics in Brazil increased nearly fivefold compared to three years ago. Amorepacific, A.P. Group, Gudai Global, and Silicon Two plan to expand their product lines and sales channels based on local subsidiaries and distribution networks.
Ryu Jin, chairman of the Korea Economic Association, expressed hope in his opening remarks that this event would mark the launch of a Korea-Brazil "one team," stating, "I hope that companies from both countries will work together as one team in investment, production, and supply chains to advance into the global market together."
At a Korea-Brazil business roundtable held in São Paulo on July 28, seven memorandums of understanding (MOUs) were signed in areas including aerospace, critical minerals, and AI healthcare.
The most notable focus was on next-generation commercial aircraft. Brazilian company Embraer is considering expanding its business from existing 70-120 seat regional aircraft to 150-200 seat mid-size aircraft. Korea Aerospace Industries (KAI) and Korean Air discussed the possibility of joint development with Embraer through separate negotiations.
KAI also signed an MOU with Embraer for cooperation in the commercial aircraft and aerospace sectors. KAI currently supplies wing structures for commercial aircraft and electric vertical takeoff and landing (eVTOL) vehicles, while Korean Air provides fuselage and components. Both companies plan to expand their roles beyond parts supply to include participation from the design and development stages.
Kim Yong-beom, head of the presidential office's policy office, held a briefing at the press center in São Paulo, stating, "Although this is an initial stage, discussions are much more concrete than previous parts supply cooperation," adding, "Our companies are also showing substantial interest." However, the method and scale of participation will likely be finalized after economic feasibility studies and negotiations between companies.
Hyundai Motor, which is on track to achieve annual sales of 200,000 units in Brazil for the third consecutive year, has proposed green vehicles and energy as new pillars of cooperation. Since starting local production in Brazil in 2012, Hyundai has grown to become the fourth-largest automaker in the country with ten subsidiaries.
Before the event, Hyundai Motor Group Chairman Chung Eui-sun responded to questions from reporters about the progress of the Brazilian business, saying, "There is still a long way to go," and noted that "China is also aggressively marketing here." This suggests a need to enhance market competitiveness amid increasing pressure from Chinese companies.
In the critical minerals sector, POSCO Group announced plans to utilize Brazil not just as a source of raw materials but as a hub for supply chain development. POSCO International signed an MOU for rare earth supply chain cooperation with Brazilian mineral company Meteoric Resources. POSCO plans to expand its existing cooperation, which is centered on iron ore, to include strategic minerals like rare earths.
SK Biopharm will collaborate with Brazilian pharmaceutical company Eurofarma on AI-based digital healthcare. The two companies plan to expand their business scope to include digital therapeutics and the use of medical data following their collaboration on epilepsy treatments. Naver is exploring AI care service cooperation with the Brazilian government and aims to establish Brazil as a hub for AI business in Latin America.
Local production investments are also ongoing. LG Electronics began mass production at its refrigerator factory in Paraná this month, while Samsung Electronics plans to strengthen digital transformation cooperation based on its local workforce of about 5,000. Hanwha Ocean aims to expand cooperation with local shipyards and equipment companies based on its experience in participating in Petrobras's floating production, storage, and offloading (FPSO) projects.
K-beauty companies are also accelerating their efforts in the Brazilian market. According to Amorepacific, the import value of Korean cosmetics in Brazil increased nearly fivefold compared to three years ago. Amorepacific, A.P. Group, Gudai Global, and Silicon Two plan to expand their product lines and sales channels based on local subsidiaries and distribution networks.
Ryu Jin, chairman of the Korea Economic Association, expressed hope in his opening remarks that this event would mark the launch of a Korea-Brazil "one team," stating, "I hope that companies from both countries will work together as one team in investment, production, and supply chains to advance into the global market together."
* This article has been translated by AI.
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