South Korea and Chile have agreed to reactivate the Free Trade Agreement (FTA) committee, addressing implementation and improvement issues for the first time in a decade. The critical mineral supply chain discussions will be elevated to a ministerial level, with a new working-level channel established.
The government aims to enhance the stability of mineral supply from Chile, valued at $2.1 billion (approximately 3 trillion won) annually, while providing a framework to support local companies' entry into the Chilean market. Chile is recognized as the world's largest copper producer and the top country for lithium reserves.
President Lee Jae-myung announced the outcomes of the summit with Chilean President José Antonio Kast during a joint press conference in Santiago on July 30. Following the summit, five memorandums of understanding (MOUs) were signed covering mineral resources, security, polar research, maritime safety and security, and investment cooperation.
President Lee stated, “The two countries have decided to reactivate the Korea-Chile FTA committee after ten years to review trade and investment issues. We agreed to discuss ways to enhance our trade relations, including mutually beneficial improvements to the FTA.”
The Korea-Chile FTA, which came into effect in 2004, was Korea's first FTA. President Lee noted that trade between the two countries has increased nearly fourfold over the past 20 years, affirming the strategic choice made by both nations.
In a prior written interview with the Argentine media Infobae, President Lee emphasized the need for the Korea-Chile FTA to evolve to reflect new realities, mentioning digital trade, artificial intelligence, clean technology, resilient supply chains, and carbon neutrality. The summit resulted in an agreement to reactivate official channels for discussing improvements to the agreement.
The two leaders also exchanged views on cooperation within major economic frameworks such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Pacific Alliance (PA), and the Digital Economy Partnership Agreement (DEPA). Based on the investment cooperation MOU, both countries will seek to identify investment opportunities in strategic sectors, including critical minerals and energy, while expanding business exchanges.
In the critical minerals sector, the existing cooperation framework has been strengthened. The two nations signed a mineral resources partnership MOU and agreed to elevate the existing joint committee to a ministerial level for regular operations. A separate working-level channel will be established to continuously monitor cooperation tasks.
The MOU includes comprehensive cooperation throughout the supply chain for key minerals such as lithium and copper, covering exploration, development, production, processing, utilization, information exchange, technology cooperation, and professional personnel exchange. Minister of Trade, Industry and Energy Lee Chang-yang and Chilean Minister of Mining Daniel Mas Valdés signed on behalf of their respective countries.
President Lee emphasized, “Chile, as the world's top copper producer and lithium reserve holder, is a natural and ideal partner for South Korea, a leader in advanced industries such as semiconductors and batteries, in building a critical mineral supply chain.”
He further explained that based on the mineral resources partnership MOU, the scope of cooperation will be expanded to encompass the entire mineral supply chain, including information exchange, technology cooperation, and human resource exchanges.
A cooperative framework to support increased investment between the two countries has also been established. KOTRA (Korea Trade-Investment Promotion Agency) and the Chilean Foreign Investment Promotion Agency signed an investment cooperation MOU focused on promoting two-way investment, exchanging investment information, dispatching investment delegations, and hosting seminars and business meetings.
Cooperation on large infrastructure projects in Chile was also discussed. President Lee highlighted the Chacao Bridge, the largest national project in Chile and the first four-lane suspension bridge in South America, led by a consortium headed by Hyundai Engineering & Construction, as a prime example of collaboration.
The two leaders agreed to support the smooth progress of the Chacao Bridge construction, aiming for it to become a landmark of infrastructure cooperation between the two countries. Once completed, the bridge will connect Chiloé Island in southern Chile to the mainland, facilitating local residents' mobility and economic activities.
Cooperation to enhance public safety and combat transnational crime has also been strengthened. The police authorities of both countries signed a security cooperation MOU, which includes protecting overseas citizens, exchanging crime information, conducting joint operations, and enhancing the apprehension and extradition of fugitives, as well as sharing the Korean-style security system.
Through the maritime safety and security cooperation MOU, the two nations will establish an information-sharing system for combating maritime crimes, including illegal fishing and vessel traffic services (VTS). The government expects this will enhance Chile's maritime surveillance and law enforcement capabilities and expand the transnational crime cooperation network between Korea and Latin America through the Pacific.
The two leaders agreed on the need for an institutional foundation to expand cooperation in the defense and shipbuilding sectors and will continue discussions on this matter.
The polar research cooperation MOU was also revised. Originally signed in 2012 and amended once in 2018, the scope of the cooperation document has been expanded to include the operation of eco-friendly Antarctic bases, new environmental and ecological issues, and Antarctic governance.
Punta Arenas in southern Chile serves as a gateway for researchers from Korea's Antarctic Sejong Station to access and supply materials. President Lee expressed gratitude to the Chilean government for supporting Korea's Antarctic research activities and requested continued cooperation for the safety of researchers.
Additionally, President Lee noted that K-pop, K-dramas, K-food, and K-beauty have become a trend in Chile, indicating plans to expand human and cultural exchanges.
President Kast expressed his willingness to cooperate with the South Korean government in resolving the North Korean nuclear issue and establishing peace on the Korean Peninsula. The two leaders also agreed to closely collaborate for the successful joint hosting of the 4th United Nations Ocean Conference in 2028 and the 2032 APEC summit in Chile.
President Lee expressed hope that South Korea and Chile, as true friends or 'amigos,' will join hands to create a better future and invited President Kast to visit Korea soon.
* This article has been translated by AI.
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