Seoul: President Lee Jae Myung announced that South Korea and Chile have agreed to revive a joint committee to discuss modernizing their free trade agreement (FTA), aiming to enhance bilateral trade. The announcement was made during a joint press conference with Chilean President Jose Antonio Kast following their summit.
According to Yonhap News Agency, the reactivation of the FTA committee marks the first such initiative in a decade, signaling a renewed commitment to strengthen South Korea-Chile trade relations. President Lee emphasized that the modernization of the FTA is not merely about revising trade rules but about expanding business opportunities to reflect new global realities. The South Korea-Chile FTA, which came into effect in 2004, has been a cornerstone of economic relations between the two nations, with bilateral trade quadrupling over the past 20 years.
The summit included discussions on cooperation with major economic blocs like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Pacific Alliance. Additionally, the leaders agreed to pursue cooperation in critical mineral supply chains, defense, infrastructure, and public security. Lee highlighted Chile's status as the world's largest copper producer and a key partner for South Korea in the establishment of critical mineral supply chains, essential for the semiconductor and battery industries.
South Korea also pledged support for Hyundai Engineering and Construction Co.'s Chacao Bridge project in Chile and agreed to explore cooperative frameworks in the defense and shipbuilding industries. Cultural cooperation was also on the agenda, with South Korea promising to support Chile's growing interest in K-pop and Korean entertainment.
The summit's outcome included a commitment to combat transnational crimes and enhance maritime security through cooperation between police and coast guard agencies. President Lee also sought Chile's support in addressing North Korea's nuclear issues and promoting peace on the Korean Peninsula, with President Kast expressing his commitment to work towards these goals.
President Kast described the South Korea-Chile FTA as a significant achievement, highlighting South Korea as Chile's sixth-largest trading partner. He invited President Lee to visit the South Pole, underscoring ongoing joint exploration projects.
To formalize their commitments, South Korea and Chile signed five memorandums of understanding (MOUs), including one on cooperation in critical minerals. The agreements aim to elevate discussions to the ministerial level and establish comprehensive cooperation in mineral resources such as lithium and copper. Other MOUs focus on information sharing and joint operations to combat transnational crime, as well as transferring public security management expertise from Seoul to Chile.
Earlier, President Lee paid tribute to Chilean independence hero Bernardo O'Higgins in Santiago before being formally received by President Kast at the presidential palace. The visit to Chile is part of President Lee's three-nation South America tour, which continues with a visit to Argentina for talks with President Javier Milei.