President Lee Jae Myung, who is currently on an official trip to Chile, met with President José Antonio Kast on the 30th (local time) and pledged to enhance collaboration, noting that both nations are perfect partners in building a critical mineral supply chain. Chile is the top producer of copper, which is vital for semiconductor production, and possesses the world’s largest lithium reserves, a crucial component for the battery industry.
President Lee signed a memorandum of understanding (MOU) on a mineral resource partnership with President Kast following their meeting at the presidential palace in Santiago, the capital of Chile. The agreement involves upgrading and formalizing the bilateral “Mineral Resource Partnership Committee” to a ministerial level, and working together throughout the entire lifecycle of key minerals such as lithium and copper, including extraction, processing, and manufacturing. A representative from Cheong Wa Dae mentioned, “This creates an institutional framework to improve the stability of Chile’s mineral supply, which is worth 2.1 billion dollars each year (around 3 trillion Korean won), and facilitates the entry of Korean companies into the local market.”
The two nations also finalized three more memorandums of understanding aimed at boosting investment and partnership in public safety and maritime security. The current memorandum on polar research collaboration was extended to cover environmental, ecological, and Antarctic governance aspects. Chile acts as the access point to the King Sejong Station in Antarctica. Both parties also committed to establishing the institutional framework for enhancing cooperation in defense and shipbuilding.
The leaders chose to revive the “Korea-Chile FTA Free Trade Committee” following a ten-year hiatus and to speed up initiatives aimed at updating the FTA. The Korea-Chile FTA, which was South Korea’s initial trade agreement with another country, has been active since 2004. After more than two decades, there is an increasing necessity to incorporate changes in economic and trade environments. In an interview with EFE, a Spanish-language news organization, before his trip to Chile, President Lee remarked, “The current economy is undergoing restructuring centered on digital trade, artificial intelligence (AI), clean technology, resilient supply chains, and transitions toward carbon neutrality. The FTA needs to adapt to this new reality.”
During a dinner gathering with Korean residents the day before, President Lee stated that Chile was the first Latin American nation to formally acknowledge the government of the Republic of Korea in 1949, and he added, “Although one of the most distant countries, we are united by strong friendship.” President Lee participated in a business discussion with Korean and Chilean business executives on the afternoon of the 30th, after which he traveled to Argentina, the last destination of his South American trip.
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