President Lee Jae Myung and Chilean President José Antonio Kast shake hands ahead of a small-group summit at the presidential palace in Santiago on Thursday (local time). [Yonhap]
President Lee Jae Myung and Chilean President José Antonio Kast shake hands ahead of a small-group summit at the presidential palace in Santiago on Thursday (local time). [Yonhap]

President Lee Jae Myung, on an official visit to Chile, held a summit with Chilean President José Antonio Kast on Thursday (local time) and signed five memorandums of understanding, including one on a mineral resources partnership with the resource-rich nation.

The visit marked the first presidential trip to Chile in 11 years — to the country with which South Korea signed its first free trade agreement — and the two leaders agreed to pursue modernization of the Korea-Chile FTA and to reactivate the FTA Joint Trade Committee for the first time in a decade.

Later that evening, Lee concluded his official schedule in Chile and arrived in Buenos Aires, Argentina, the third and final destination of his South American tour.

At the summit, Lee discussed ways to develop the bilateral relationship as well as major regional and international issues. The two leaders agreed to inject new momentum into the strategic partnership elevated in 2022 to mark the 60th anniversary of diplomatic ties.

Lee noted that the bilateral relationship carries special significance: Chile was the first South American country to recognize the Republic of Korea in 1949 and the first country to conclude a free trade agreement with Seoul.

Kast praised South Korea's skilled workforce and industrial and technological capabilities, and said he hoped cooperation with South Korea would deepen as Chile pursues digital transformation and the development of future industries.

The most prominent outcome of the summit was the two leaders' agreement to modernize the Korea-Chile FTA, expanding its coverage to advanced future industries and broadening the scope of cooperation. The agreement entered into force in 2004 and has since quadrupled bilateral trade, but has long been criticized for failing to reflect new trade realities such as digital commerce, AI, supply chains and clean energy.

Lee also posted on Facebook that day, saying he would "push forward with modernizing the Korea-Chile FTA and expand trade and investment," adding that he would "deliver tangible results that citizens and businesses can feel."

To that end, the two leaders agreed to reactivate the Korea-Chile FTA Joint Trade Committee after a decade-long hiatus to conduct a comprehensive review of trade and investment issues and discuss mutually beneficial improvements to the agreement that reflect the changed trade environment.

The two sides also agreed to cooperate within major economic frameworks including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Pacific Alliance and the Digital Economy Partnership Agreement — a move observers say marks the start of South Korea's push to expand its economic footprint across the entire Pacific Rim.

President Lee Jae Myung speaks at the Korea-Chile Business Round Table held at a hotel in Santiago, Chile, on Thursday (local time). [Yonhap]
President Lee Jae Myung speaks at the Korea-Chile Business Round Table held at a hotel in Santiago, Chile, on Thursday (local time). [Yonhap]

The two countries also agreed to significantly strengthen critical mineral supply chain cooperation on the sidelines of the summit.

The two leaders agreed to expand supply chain cooperation based on the complementary industrial structures of South Korea, which holds competitive strengths in semiconductors and batteries, and Chile, the world's largest holder of copper and lithium reserves.

To that end, the two sides signed an MOU on a mineral resources partnership at the summit. The agreement broadens existing cooperation — previously centered on resource development — to cover critical minerals including lithium and copper more broadly, establishing a supply chain framework to underpin advanced industry competitiveness and economic security.

The government particularly emphasized that the agreement goes beyond simple resource acquisition to lay an institutional foundation for building a stable critical mineral supply chain. As US-China supply chain competition intensifies, stable access to lithium and copper — key raw materials for batteries and semiconductors — is directly tied to national competitiveness, making cooperation with Chile, the world's largest holder of those reserves, all the more important, officials said.

Under the MOU, the two countries agreed to elevate their existing intergovernmental consultative body to the ministerial level and hold regular meetings. The scope of cooperation is expected to expand to include information exchanges on critical minerals, collaboration on exploration, development and processing technology, and exchanges of specialist personnel.

Lee said the mineral resources partnership MOU would serve as an opportunity to "build a stable critical mineral supply chain and jointly develop competitiveness in future industries."

The two leaders also held in-depth discussions on major regional and international issues, including the Korean Peninsula. They shared the view that the Korean Peninsula issue is important for maintaining international peace and stability, and Lee asked for Chile's continued attention and support in resolving the North Korean nuclear issue and establishing lasting peace on the peninsula. Kast said the two countries would "work on it together."

Following the summit, Lee hosted a business round table at a hotel in downtown Santiago, bringing together executives from South Korea and Chile.

Lee highlighted Chile's status as a resource-rich nation and said, "The two countries already have successful cooperation cases in the critical minerals sector. I hope models like the joint venture between South Korea's LS and Chile's state-owned Codelco will expand further."

He added that "if the two countries join forces, we can create remarkable synergies not only in the supply, value creation and supply chains of critical minerals, but also across diverse sectors including advanced manufacturing and defense."

Eleven South Korean business leaders attended the round table, including Posco Chairman Jang In-hwa, LS Chairman Koo Ja-eun, OCI Holdings Chairman Lee Woo-hyun — who also serves as chairman of the Korea-Chile Economic Cooperation Committee — and Korea Zinc Chairman Choi Yun-beom.


sang@heraldcorp.com