Seoul: President Lee Jae Myung announced that South Korea and Chile have agreed to reactivate a joint committee to discuss modernizing their free trade agreement (FTA) as part of efforts 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 South Korean president emphasized the importance of expanding cooperation in trade and investment to promote mutual growth. The reactivation of the joint FTA committee, which is happening for the first time in a decade, aims to enhance trade relations and modernize the existing South Korea-Chile FTA. The original agreement, which took effect in 2004, marked South Korea's first FTA and has resulted in a quadrupling of bilateral trade over the past 20 years.
In a recent media interview, President Lee stated that updating the agreement is essential not only for revising trade rules but also for expanding business opportunities to meet new global realities. Discussions with President Kast also covered economic cooperation with key blocs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Pacific Alliance.
The leaders agreed to pursue cooperation in critical mineral supply chains, defense, infrastructure, and public security. President Lee highlighted Chile's status as the world's largest copper producer and a major lithium reserve holder, making it an ideal partner for South Korea's advanced industries, including semiconductors and batteries.
South Korea pledged support for Hyundai Engineering and Construction Co.'s Chacao Bridge project in Chile. Additionally, the two countries plan to establish an institutional framework for cooperation in the defense industry and shipbuilding. The summit also resulted in South Korea's commitment to support Chile's interest in K-pop and South Korean culture, and cooperation on transnational crime and maritime security.
During the summit, President Lee sought Chile's support for addressing North Korea's nuclear issues and fostering peace on the Korean Peninsula. President Kast affirmed his commitment to collaborate on peace and security.
Highlighting the significance of the South Korea-Chile FTA as one of the first trade agreements between Asia and South America, President Kast expressed Chile's honor in this partnership. Chile recognizes South Korea as its sixth-largest trading partner and extended an invitation to President Lee for a joint visit to the South Pole.
In conjunction with the summit, South Korea and Chile signed five memorandums of understanding (MOUs), including one on critical mineral cooperation. The countries agreed to elevate their joint committee to the ministerial level for discussions on the entire mineral resource value chain. Other MOUs included cooperation between investigative agencies for combating transnational crime and sharing public security management expertise.
Chile is the second stop in President Lee's three-nation South America tour, following his visit to Brazil for a summit with President Luiz Inacio Lula da Silva. President Lee is scheduled to depart for Argentina, where he will meet President Javier Milei.