SEOUL, September 25 (AJP) - South Korea and Mexico agreed to deepen economic and supply-chain ties spanning oil, critical resources and investment while expanding cooperation into artificial intelligence, aerospace and defense, as President Lee Jae Myung and Mexican President Claudia Sheinbaum sought to give new momentum to relations between the two major manufacturing economies.
The two leaders adopted a 2026–2030 Korea-Mexico Joint Action Plan during their summit at the National Palace in Mexico City on Thursday, setting out cooperation in trade, development, intellectual property, space, cultural heritage and education.
The summit produced one of the most concrete advances in bilateral investment rules in years, with the two countries concluding seven years of negotiations to revise their investment protection agreement. The amended pact will go through signing and ratification procedures before taking effect.
Lee also pressed for a broader trade agreement, saying a more comprehensive institutional framework was needed to expand trade and investment and provide businesses with a more predictable operating environment.
The two sides agreed to conduct a joint study through their trade authorities on ways to deepen mutually beneficial economic ties.
The issue has gained urgency as Korean companies with manufacturing operations in Mexico face uncertainty surrounding the review of the United States-Mexico-Canada Agreement, or USMCA.
At a business roundtable jointly chaired by Lee and Sheinbaum after the summit, Korean executives said Mexico had evolved beyond a manufacturing base into a strategic gateway to both North and Latin American markets.
The meeting drew about 30 government and business representatives from the two countries, including Korea Chamber of Commerce and Industry Chairman Chey Tae-won and LG Group Chairman Koo Kwang-mo.
Korean executives said decades of investment had helped develop higher-value manufacturing and local supply chains in Mexico, while bilateral business ties were spreading from automobiles and home appliances to power and energy, mobility, advanced materials, food and beauty products.
They urged the two governments to provide greater institutional certainty as Mexico seeks to advance Plan Mexico, Sheinbaum's industrial strategy aimed at strengthening domestic production, infrastructure and strategic industries.
Energy and supply chains emerged as another pillar of the summit.
Lee said the two governments would establish an intergovernmental dialogue channel covering crude oil and critical resources, building on Mexico's assistance in supplying additional crude to South Korea following a conversation between the two leaders in May.
The two countries also agreed to establish a $100 million credit line between their export-import banks, intended to support Mexican companies buying Korean goods and services as well as Korean companies investing in Mexico.
For trade facilitation, they agreed to strengthen intellectual-property protection and information sharing on illicit shipments, with follow-up meetings planned on identifying counterfeit Korean products and blocking illegal or hazardous goods.
Economic cooperation is also moving into industries central to both governments' growth strategies.
Lee and Sheinbaum agreed to connect Korea's strategic-industry push with Plan Mexico by expanding cooperation in AI and digital technologies, aerospace and defense.
A joint public-private Korean delegation will visit Mexico in November to pursue AI and digital projects, while a Korea-Mexico declaration on AI calls for the two countries to review implementation of the APEC AI Initiative adopted in Gyeongju last year. Mexico is due to chair APEC in 2028.
An aerospace industry memorandum of understanding and a planned “Korea-Mexico Space Day” in Mexico in November are intended to identify joint commercial projects.
Defense cooperation could become another new area. The two leaders agreed to explore how South Korea could contribute to Mexico's military modernization, with a defense cooperation memorandum covering training, education, research and development and exchanges of expertise.
Lee also raised the prospect of Korean defense technology being produced locally in Mexico and the two countries jointly entering third-country markets.
The relationship is expanding beyond heavy industry and technology into consumer culture.
Sheinbaum said Mexico had agreed to support construction of a center to promote Korean culture, including K-pop, while Korea would help introduce Mexican culture to Korean audiences.
She pointed to strong interest among Mexican youth in Korean music and food, mentioning performances by Stray Kids and saying Mexico was looking forward to a BTS visit in 2027.
Lee said annual travel between the two countries had grown to around 200,000 people and that Mexican interest had spread from K-pop to K-beauty and K-food.
The two governments plan to create a working group this year to encourage joint content production and talent development, while Sheinbaum proposed a government scholarship program to expand student exchanges.
The leaders also agreed on cooperation in public security, agriculture and anti-corruption, including mechanisms to address online fraud, human trafficking and drug trafficking.
The summit marked a broader attempt by Seoul and Mexico City to reposition their relationship as global supply chains shift and companies seek greater resilience in manufacturing networks linking Asia, North America and Latin America.
Lee described Mexico as a key hub in global supply chains and said Korea was ready to participate as a partner in Plan Mexico.
Sheinbaum said the talks confirmed opportunities for cooperation in future mobility, AI, digital technology, science and education and expressed interest in expanding ties into defense.
The two governments also pledged to work together through multilateral forums including the United Nations, APEC and MIKTA, while Mexico expressed support for Seoul's policy of peaceful coexistence on the Korean Peninsula.
AJP Takeaways
- Korea and Mexico are upgrading ties around supply-chain security, with new cooperation on crude oil, critical resources, investment protection and financing as companies brace for uncertainty from the USMCA review.
- Economic cooperation is moving beyond autos and appliances into AI, aerospace, defense and advanced industries, aligning Seoul’s strategic-sector push with Mexico’s “Plan Mexico” industrial policy.
- Mexico is becoming a more important bridge for Korean companies into North and Latin America, while both governments are working toward stronger institutional support through a revised investment pact and discussions on a broader trade agreement.
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