President Yoon Suk Yeol on July 30, local time, presented the joint venture between South Korea's LS Group and Chile's state-owned Codelco as a successful model for cooperation in critical minerals, suggesting its expansion into advanced manufacturing and defense industries.
Speaking at the Korea-Chile Business Roundtable held at a hotel in Santiago, Yoon expressed hope that "the joint venture model between LS and Codelco can be further expanded in the future." He emphasized that by joining forces, the two countries could create remarkable synergies across various sectors, including securing critical minerals and building value chains.
The event was hosted by South Korea's Ministry of Trade, Industry and Energy and Chile's Ministry of Foreign Affairs, with the Korea Chamber of Commerce and Industry and the Chilean Industrial Association co-organizing. About 30 participants, including executives from 22 major companies in minerals, energy, defense, digital, and distribution sectors, attended.
Notable attendees from South Korea included Lee Woo-hyun, Chairman of OCI Holdings; Jang In-hwa, Chairman of POSCO Holdings; Koo Ja-eun, Chairman of LS Group; Choi Yoon-bum, Chairman of Korea Zinc; Ryu Jae-cheol, President of LG Electronics; Jung In-seob, President of Hanwha Ocean; Choi Soo-yeon, CEO of Naver; Jang Jae-hoon, Vice Chairman of Hyundai Motor; and Lee Dong-hoon, CEO of SK Biopharm.
From Chile, Rosario Navarro, President of the Chilean Industrial Association, and Susana Jiménez, President of the Chilean Production and Commerce Confederation, were among the executives present, along with leaders from mining companies AMSA and Molymet, steel company CAP, and pulp and timber companies CMPC and Arauco.
Yoon noted that the global economy is undergoing a significant transformation marked by supply chain restructuring and technological competition, urging Korea and Chile to create new growth opportunities based on their complementary industrial structures.
"Chile is a leading producer of lithium and copper, serving as a key supply base for the global green industry," Yoon said, adding that "Korea possesses world-class competitiveness in advanced manufacturing sectors such as batteries, advanced materials, automobiles, semiconductors, and artificial intelligence (AI)." He stated that Chile, rich in critical minerals, and Korea, a powerhouse in advanced manufacturing, are optimal partners for collaboration, especially in the face of a rapidly changing global economic order.
According to a written briefing by Chief Spokesperson Kang Yu-jung, business leaders discussed specific cooperation plans focused on three areas: critical minerals, advanced industries and digital technology, and green energy and trade expansion.
The LS-Codelco partnership, cited by Yoon as a successful example, operates a precious metal recovery plant in Mejillones, Chile, established as a joint venture where LS MnM holds a 66% stake and Codelco holds 34%. Completed in 2017, the plant processes anode slime, a byproduct of Codelco's copper refining process, to recover high-value metals such as gold, silver, palladium, and platinum. This collaboration is recognized as a prime example of enhancing local value by combining Chilean raw materials with Korean refining technology.
LS plans to expand its cooperation with Chile, anticipating increased copper demand due to the expansion of AI data centers and investments in power grids. The company aims to explore joint ventures across the entire supply chain, moving beyond simple mineral imports to include refining and material production.
In the defense and shipbuilding sectors, Hanwha Group proposed a collaboration model that positions Chile as a hub for entering the Latin American market. Hanwha suggested joint design and production for Chile's navy submarine and frigate projects, as well as cooperation extending to third-country exports. The two nations' leaders previously welcomed the signing of a contract for the export of Korean military vehicles to Chile and agreed to establish a long-term cooperation foundation in defense and shipbuilding.
In the digital sector, Naver proposed building a 'full-stack AI ecosystem' between the two countries, connecting infrastructure such as AI semiconductors and data centers with platforms, large language models (LLMs), and application services.
Naver explained that it could combine Chile's experience in developing LLMs based on its native language with Korea's AI technology. The company also highlighted sustainable AI ecosystems, including eco-friendly data centers utilizing Chile's abundant renewable energy.
In the green energy sector, OCI Holdings expressed its intention to expand cooperation with Chile based on its experience in solar core materials, generation, and energy storage systems (ESS). The plan includes discovering new investment projects by linking Chile's abundant sunlight and renewable energy resources with Korean companies' technologies.
In consumer goods, discussions were held on how small and medium-sized enterprises can enter local distribution networks. The food export company Hosanmulsan announced plans to expand the sales network for Korean food products in collaboration with major local retailers in Chile.
The trading company CICD proposed utilizing major drugstores in Chile to supply Korean cosmetics, aiming to use this as a foothold for entering the Latin American market. This initiative seeks to broaden the scope of economic cooperation between the two countries from minerals and manufacturing to consumer goods and culturally linked products.
Patricio Torres, Deputy Minister of Foreign Affairs of Chile, noted that as of 2025, Korea ranks as Chile's sixth-largest trading partner globally and third-largest in Asia. He pointed out that while trade between the two countries has increased by an average of 6.1% annually since 2020, there remains significant room for additional cooperation in investment, innovation, and supply chains.
The Chilean government plans to send a large-scale public-private economic delegation to Korea in September, involving businesses, economic organizations, and relevant agencies. The delegation aims to discover new projects in trade, investment, technological innovation, new industries, and supply chains, continuing the momentum for cooperation established during the recent summit and roundtable.
Rosario Navarro emphasized that cooperation between the two countries should not remain limited to Chile providing resources and Korea supplying technology, stating, "Both countries must become partners in creating new value together."
Navarro urged the successful completion of negotiations to modernize the Korea-Chile Free Trade Agreement (FTA), reflecting aspects such as the digital economy, trade facilitation, environment, intellectual property rights, and access to agricultural markets. The two countries agreed to reactivate the FTA Free Trade Committee for the first time in ten years during the summit.
Lee Woo-hyun, Chairman of OCI Holdings and head of the Korea-Chile Private Economic Cooperation Committee, remarked, "The two countries share a special relationship as each other's first FTA partner," expressing hope that this meeting would lead to new investments, business opportunities, and a lasting partnership.
In closing remarks, President Yoon stated, "We have confirmed that the economic cooperation between our two countries, which began with the FTA, is expanding into minerals and advanced future industries." He added that solidarity among nations sharing common values is becoming increasingly important in overcoming uncertainties in the global economy.
Yoon expressed hope that the cooperation ideas shared by business leaders would lead to concrete and tangible results that citizens can feel, assuring that both governments would robustly support businesses in their pursuit of new areas of endeavor.
* This article has been translated by AI.
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