The South Korean government is set to enhance economic cooperation with Brazil, focusing on three key areas: next-generation civil aircraft, critical mineral supply chains, and K-beauty.
Specifically, South Korea and Brazil aim to double their trade volume, which reached $14.3 billion last year, within two years to address global uncertainties.
During a business roundtable in São Paulo on July 28, South Korean President Lee Jae-myung stated, "We can achieve significant results in three areas: joint development of next-generation civil aircraft, cooperation in critical minerals, and the rapidly popular K-beauty industry."
Following the elevation of their relationship to a strategic partnership in February, the two countries agreed to specify cooperation areas through corporate investments and joint projects during this roundtable. Participants identified manufacturing, infrastructure, advanced industries, and consumer goods and distribution as key collaboration pillars and discussed new business opportunities.
President Lee noted that the AI revolution is intensifying technological competition and reshaping supply chains, leading to rapid changes in the global industrial and economic order. He emphasized the importance of securing cooperative partners that can leverage each other's strengths amid growing global uncertainties.
He highlighted Brazil's wealth of iron ore and critical minerals, along with its abundant clean energy resources from hydropower, wind, and solar, as well as its capacity for producing bioethanol and small to medium-sized civil aircraft.
President Lee asserted, "If South Korea's unique innovative technology and manufacturing capabilities combine with Brazil's rich resources, the two countries can become optimal partners in leading stable supply chains and future industries together."
In the aviation sector, plans are underway to connect Brazil's capabilities in developing and producing small to medium-sized civil aircraft with South Korea's aircraft parts manufacturing technology. The government plans to establish a cooperative system involving relevant ministries and companies to expand the role of domestic firms beyond traditional parts supply.
During the roundtable, South Korean and Brazilian companies and institutions signed a total of seven memoranda of understanding (MOUs) in areas including aerospace, AI-based digital healthcare, critical minerals, research and development (R&D), and investment and trade. Korea Aerospace Industries (KAI) signed an MOU for cooperation in civil aircraft and aerospace with Brazil's Embraer, the world's third-largest aircraft manufacturer after Boeing and Airbus.
Additionally, discussions will be held regarding lowering barriers for Brazilian beef to enter the South Korean market, following stalled negotiations on the Korea-Mercosur trade agreement due to disagreements over the opening of the agricultural market in 2021.
President Lee pointed out that the current level of trade is insufficient compared to the economic scale and industrial complementarity of the two countries. Brazil is South Korea's largest trading partner in South America and a key hub for entering the Latin American market, but the potential for cooperation has not been fully realized in actual trade and investment.
The government plans to address institutional issues such as tariffs and regulations that hinder cooperation between companies and to establish a support system to directly hear the concerns of businesses already operating or looking to enter the market.
President Lee concluded, "If business leaders from both countries join forces, South Korea and Brazil can become leading aircraft manufacturing nations in the global aviation market, important partners in supply chain cooperation, and leaders in the global beauty market."
* This article has been translated by AI.
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