SEOUL, September 25 (AJP) -South Korea secured an additional 13 million barrels of Mexican crude oil and laid the groundwork for Korean defense companies to participate in Mexico’s military modernization program, said Seoul's top security aide.
President Lee and Mexican President Claudia Sheinbaum agreed to deepen cooperation in energy supply chains and defense as part of a broader effort to turn their strategic partnership into more concrete economic and industrial ties, National Security Adviser Wi Sung-lac said in a briefing wrapping up summit on Thursday.
The two leaders welcomed the additional purchase of 13 million barrels of Mexican crude secured by Korean companies following their phone conversation in May and agreed to continue cooperation aimed at ensuring a stable oil supply.
The agreement takes on added significance for South Korea, which imports nearly all of its crude and has been seeking to diversify supply sources amid heightened geopolitical risks and volatility in global energy markets.
Mexico is one of the world’s major oil producers and has become increasingly important to Seoul as Korea seeks to reduce its exposure to disruptions concentrated in traditional Middle Eastern supply routes.
Defense was another major focus.
Lee and Sheinbaum discussed ways South Korea could contribute to Mexico’s military modernization drive, opening the way for cooperation that could extend beyond weapons exports to local production, maintenance, supply chains, financing and personnel training.
The two countries also signed a memorandum of understanding on defense cooperation covering exchanges of information and experience, military training and joint research and development.
Lee said Korea hoped its advanced defense technologies could support production of military equipment inside Mexico and eventually allow companies from the two countries to pursue third-country markets together.
The agreements capped the first state visit to Mexico by a South Korean president in 16 years.
Lee began Thursday’s official schedule by laying a wreath at the Altar a la Patria in Chapultepec Park before being welcomed by Sheinbaum at the National Palace. The two leaders held a restricted meeting followed by an expanded summit and luncheon.
The governments signed 16 memorandums of understanding during the visit and separately adopted an artificial intelligence cooperation declaration, according to Wi’s briefing. The agreements covered areas including the economy, finance, education, culture, tourism, development and customs.
At the center of the economic package was the conclusion of negotiations to revise the bilateral investment protection agreement after seven years of talks.
The revised pact strengthens protections for investors while clarifying Mexico’s regulatory authority and revising dispute settlement procedures. Seoul said the agreement would also protect transfers of investment funds during foreign-exchange crises and broaden safeguards against excessive tax measures.
The two countries also agreed on a new $100 million credit line between their export-import banks and measures to strengthen intellectual property protection and information sharing on illegally cleared goods.
Lee and Sheinbaum agreed to conduct a joint study on ways to expand bilateral trade and investment and establish a director-level dialogue on supply chains, including crude oil and critical minerals.
The leaders also sought to connect Korea’s strategic industries with Sheinbaum’s “Plan Mexico,” which seeks to expand domestic manufacturing and strengthen the country’s industrial base.
Cooperation will extend to artificial intelligence, digital technology and aerospace.
Under a separate AI declaration, the countries agreed that the benefits of artificial intelligence should be broadly shared rather than concentrated among a small number of countries or companies.
Mexico, which is scheduled to chair APEC in 2028, and South Korea also agreed to carry out an interim review that year of the implementation of the APEC AI Initiative promoted under Korea’s chairmanship.
In aerospace, the two governments agreed to pursue a broader framework encompassing local production and maintenance, participation in supply chains, financing and workforce development rather than limiting cooperation to aircraft sales.
The summit also produced initiatives in culture and education.
The governments agreed to pursue the establishment of a K-Culture Center in Mexico and form a working group this year to explore joint content production and talent development.
They also agreed to discuss a government scholarship program aimed at expanding exchanges among younger generations.
Cooperation will further cover transnational crime, agriculture and anti-corruption efforts. Police authorities will establish a framework for cooperation against crimes including voice phishing and investment fraud, while the two countries will seek partnerships in agricultural machinery, fertilizer and other farming technologies.
An anti-corruption working group is scheduled to be established in the first half of next year.
Lee and Sheinbaum also agreed to coordinate more closely on global issues as Mexico prepares for the possibility of chairing the Group of 20 in 2029, following South Korea’s expected presidency in 2028.
The two countries will additionally establish an international development cooperation forum aimed at identifying joint projects, particularly in Central America and the Caribbean.
Lee on Friday is scheduled to attend a Korea-Mexico business forum at the World Trade Center in Mexico City and visit a K-Expo event before meeting Mexican youths.
He will leave Mexico on Sept. 26 and return home via Anchorage, completing a trip that also took him to New York for the United Nations General Assembly.
The Mexico visit follows Lee’s July trip to Brazil, Chile and Argentina and completes his first round of visits to major Latin American economies since taking office.
AJP Takeaways
- Oil security: Korea secured an additional 13 million barrels of Mexican crude, reinforcing efforts to diversify energy supplies and reduce exposure to geopolitical disruptions.
- Defense and aerospace: The two sides opened the door to deeper cooperation in Mexico’s military modernization, including local production, maintenance, supply chains, financing and training.
- Broader economic framework: The summit produced 16 MOUs plus a separate AI declaration, while also wrapping up a seven-year negotiation to revise the bilateral investment protection agreement.
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