Buenos aires: South Korea and Argentina have reached an agreement to enhance their cooperation on critical minerals, with a particular focus on joint projects throughout the lithium value chain. This agreement was formalized through a memorandum of understanding (MOU) signed during a bilateral summit between South Korean President Lee Jae Myung and Argentine President Javier Milei in Buenos Aires.
According to Yonhap News Agency, the MOU outlines a framework for the two countries to exchange information on their policies concerning critical minerals and related investment systems. Additionally, it seeks to promote bilateral corporate investment and collaborative projects in the exploration and mining sectors of the lithium value chain, as stated by National Security Adviser Wi Sung-lac.
The two nations also agreed to ensure stable exports of Argentine crude oil to South Korea. This decision aligns with South Korea's plan to commence importing Argentine crude oil next year, following a pilot shipment earlier this year. The initiative aims to diversify South Korea's crude oil import sources, which are predominantly concentrated in the Middle East, and shift towards South America to mitigate geopolitical risks and secure stable energy supplies, according to Wi.
Furthermore, South Korea and Argentina plan to expand their energy cooperation to include natural gas and nuclear energy, exploring opportunities for additional collaboration. The countries are also committed to resuming negotiations on a free trade agreement between South Korea and Mercosur, a major South American trade bloc that includes Brazil, Argentina, Paraguay, Uruguay, and Bolivia.
To maintain momentum in implementing summit agreements and exploring business opportunities, the two countries will reactivate a joint economic committee and an energy and resource cooperation committee, as per the national security adviser.
In a bid to alleviate tax burdens on South Korean companies operating in Argentina and encourage investment, the two nations have finalized a double taxation avoidance agreement. Earlier, President Milei welcomed President Lee at the Casa Rosada, the presidential palace in Buenos Aires, where the two leaders posed for photographs before their summit.
Argentina marks the final destination in President Lee's South America tour, which primarily focuses on strengthening trade relations and cooperation on critical minerals. During his visit, President Lee also held summit talks with Brazilian President Luiz Inacio Lula da Silva and Chilean President Jose Antonio Kast.