The South Korean government has elevated its cooperation with Chile on key minerals to a ministerial level, aiming to secure supply chains for essential raw materials such as lithium and copper for future industries. The partnership will also expand collaboration in investment, defense, and digital sectors.
On July 30, the Ministry of Trade, Industry and Energy signed a memorandum of understanding (MOU) for a Korea-Chile mineral resources partnership in Santiago, Chile, during President Lee Jae-myung's official visit. A business roundtable featuring major companies from both countries was also held.
Minister of Trade, Industry and Energy Kim Jeong-kwan met with Chile's Minister of Economy and Mining Daniel Mas Valdés to discuss ways to enhance cooperation on key minerals. The two sides have maintained a cooperative foundation for nearly 20 years based on an MOU signed in 2004.
During the summit, both leaders recognized the need to combine South Korea's strengths in advanced industries such as semiconductors and batteries with Chile's resources in copper and lithium. This led to the elevation of their existing cooperation to a mineral resources partnership.
The new MOU encompasses the entire mineral value chain, going beyond mere resource development. It includes information exchange, personnel exchanges, joint geological surveys and exploration, development, processing and refining, recycling, trade, and investment. Notably, the resource cooperation committee, which had been operating at the vice-ministerial level, will now be formalized at the ministerial level, with a new working-level channel established.
The government also requested stable supplies of key minerals from Chile, such as copper, lithium, and zinc, which are in high demand among domestic companies. Chile is the world's leading producer of copper and has the largest lithium reserves, both critical raw materials for future industries like electric vehicles, batteries, and data centers. Both sides agreed on the importance of long-term and stable supply chain cooperation.
The Ministry of Trade explained that South Korea, with its global refining capabilities and eco-friendly technologies for low-carbon and low-emission refining, as well as byproduct recovery and waste reduction, can be a valuable partner in enhancing Chile's mineral industry.
Private companies and institutions also participated in the key minerals cooperation. Minister Kim held discussions with representatives from companies and institutions involved in Latin America's key minerals cooperation, including LS, Korea Zinc, Korea Mine Rehabilitation and Mineral Resources Corporation, and KOTRA, to review investment and purchasing statuses. During this visit, Korea Mine Rehabilitation and Mineral Resources Corporation renewed its MOU with the Chilean National Mining Company to secure exploration and analysis rights for copper mine projects and promote investment connections for South Korean companies.
At the Korea-Chile business roundtable, discussions focused on expanding economic cooperation in promising future sectors, including key minerals, advanced industries and digital technology, and green energy and trade. In the key minerals sector, cooperation across the entire supply chain, including exploration, development, and eco-friendly refining, was discussed.
In the advanced industries and digital sector, Naver proposed digital cooperation plans, including support for building Chile's sovereign AI using AI technology, while Hanwha Ocean presented possibilities for collaboration in shipbuilding, marine, and defense sectors. In the green energy and consumer goods sectors, OCI Holdings and Hyundai Motor shared examples of cooperation and plans for expansion.
Investment and defense cooperation will also be expanded. KOTRA signed an MOU for investment cooperation with Chile's Foreign Investment Promotion Agency. The two organizations will establish a cooperation system for exchanging investment information, discovering promising projects, networking companies, and resolving investment challenges, focusing on strategic industries such as key minerals and energy to promote investment and discover new projects. A defense contract for supplying military vehicles to Chile was also signed, laying the groundwork for additional procurement, training, and maintenance support.
A business consultation meeting was also held. The Ministry of Trade and KOTRA hosted a Korea-Chile business partnership event during the official visit, supporting the entry of South Korean small and medium-sized enterprises into the Chilean market. Over 30 South Korean companies in sectors such as K-consumer goods, bio-healthcare, and defense participated, along with more than 50 local buyers, resulting in over 120 export consultations and contracts worth approximately $5 million.
Minister Kim stated, "This has been a valuable opportunity to envision a new blueprint for the next 20 years based on the cooperative relationship built over the past 20 years since the Korea-Chile FTA was signed. The government will actively support investment, technology cooperation, and supply chain establishment in promising future sectors such as key minerals, AI and digital technology, advanced manufacturing, and green energy."
* This article has been translated by AI.
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