Seoul: President Lee Jae Myung announced that South Korea and Chile have agreed to reactivate a joint committee to discuss enhancing bilateral trade, including modernizing their free trade agreement (FTA). The South Korean president made this statement during a joint press conference with Chilean President Jose Antonio Kast following their summit.
According to Yonhap News Agency, the two countries aim to expand cooperation in trade and investment for mutual growth. The agreement includes reactivating the joint FTA committee for the first time in a decade to explore ways to improve trade relations, specifically by modernizing the South Korea-Chile FTA. President Lee emphasized that updating the agreement involves not only revising trade rules but also expanding business opportunities to align with new realities. The existing FTA between South Korea and Chile has been in effect since 2004, leading to a quadrupling of bilateral trade over the past 20 years.
President Lee and President Kast also discussed collaboration with economic cooperation blocs like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Pacific Alliance. They agreed on "mutually beneficial and future-oriented" cooperation in areas such as critical mineral supply chains, the defense industry, infrastructure, and public security. Lee highlighted Chile's status as the world's largest copper producer with significant lithium reserves, making it an ideal partner for South Korea's advanced industries.
The South Korean president pledged to explore investment and cooperation opportunities in critical minerals and energy between the two nations. South Korea also agreed to support Hyundai Engineering and Construction Co.'s Chacao Bridge project in Chile. Additionally, the leaders discussed establishing an institutional framework to expand cooperation in the defense industry and shipbuilding.
The summit's outcomes included South Korea's commitment to support Chilean interest in K-pop and South Korean culture, as well as cooperation in combating transnational crimes and addressing maritime security challenges. President Lee also sought Chile's support for addressing North Korea's nuclear issues and establishing peace on the Korean Peninsula, with President Kast expressing a commitment to work together for regional peace and security.
Chile is the second stop in President Lee's three-nation South American tour, which began in Brazil and will conclude in Argentina, where he will meet with Argentine President Javier Milei.