President Lee Removes Regulatory Barriers for Korean Companies and Strengthens Economic Cooperation with Italy in AI and Space Sectors

Upgraded to a Special Strategic Partnership

Adoption of a Strategic Action Plan through 2030

Resolution of Unfavorable Conditions in the Super Depreciation Scheme... Achievements in Development Cooperation in Africa

Business Leaders, Including Lee Jay-yong, Join the Business Roundtable

Meeting with the Pope at the Vatican, Then Heading to France for the G7 Summit

President Lee Jae-myung’s state visit to Italy resulted in significant achievements in economic diplomacy, including the resolution of regulatory requirements that could have disadvantaged Korean companies and the expansion of cooperation in cutting-edge industries. The two countries elevated their relationship to a "Special Strategic Partnership" and adopted the "2026-2030 Korea-Italy Strategic Action Plan," outlining the direction of cooperation for the next five years.

President Lee Jae-myung is delivering a commemorative speech at the 'Special Mass for Peace and Solidarity' held at St. Paul Outside the Walls Basilica in Rome, Italy, on June 14, 2026 (local time). Photo by Yonhap News

The most notable outcome was the resolution of uncertainties faced by Korean companies regarding Italy’s "super depreciation scheme." This system incentivizes corporate investment by allowing companies to deduct a higher amount than the actual purchase price of new equipment as expenses, thereby reducing their corporate tax burden. There had been concerns that the scheme could impose unfavorable conditions on Korean firms. However, after President Lee raised the issue during Italian Prime Minister Giorgia Meloni’s visit to Korea in January, the Italian government and parliament responded, and the relevant requirements were resolved.

During the summit with Prime Minister Meloni at Villa Doria Pamphili, the official residence in Rome, on June 12 (local time), President Lee expressed his gratitude, stating, "The Italian government and parliament responded swiftly, resolving conditions that were disadvantageous to our companies." He also remarked, "This is a case where high-level consultations between the two countries proactively prevented negative impacts on businesses." The Korean government also expressed its commitment to supporting the smooth and stable business operations of Italian companies.

Building upon the resolution of regulatory risks, the two countries agreed to expand cooperation in advanced industries across the board. In addition to existing collaboration in semiconductors, they will strengthen partnerships in artificial intelligence (AI), quantum technology, ICT, space, and energy. In particular, through cooperation between the two national space agencies, the countries will enhance strategic linkages in areas of mutual interest, such as satellite orbit and location tracking and responses to space hazards. This collaborative framework is significant as it combines Italy’s strengths in basic science, space, and manufacturing with Korea’s competitive edge in semiconductors, digital technology, and AI.

Once again, business leaders played an active role in economic diplomacy. At the Korea-Italy Business Roundtable (BRT) held in Rome, leading Korean companies such as Samsung Electronics, LS, and Hyosung participated, as well as major Italian firms including Ferrari and Fincantieri. Lee Jae-yong, Chairman of Samsung Electronics, said, "Italy is a special country for Samsung," and added, "If science powerhouse Italy and technology-innovative Korea join forces, we can further expand cooperation in various advanced industries." Ferrari CEO Benedetto Vigna also highlighted the dynamism of the Korean market and emphasized the potential for collaboration in electrification and digitalization.

President Lee, meeting with business leaders, stressed the role of government in economic diplomacy, stating, "Technology is created by companies, but the wings that enable them to soar in the global market are provided by the state." After the BRT, he held a follow-up meeting and requested that business challenges that cannot be resolved at the ministerial level be reported directly to the presidential policy office.

There were also achievements in development cooperation. The two countries laid the groundwork for joint projects in Africa by signing a Korea-Italy Development Cooperation Memorandum of Understanding (MOU). The plan is to link Italy’s "Piano Mattei"—its strategy for Africa—with Korea’s experience in development cooperation, and to develop collaborative projects in fields such as agriculture and rural development, digital technology, and education and training. Amid growing instability in supply chains, energy security concerns, and increasing demand for cooperation with the global South, the two countries broadened the scope of their partnership beyond Europe to Africa.

Cultural diplomacy also marked another achievement of the visit. The two countries agreed on the text of a film co-production agreement and will proceed with domestic procedures. At the Uffizi Gallery in Florence, a memorandum of understanding for "Cultural Heritage Exchange and Strengthening Museum Cooperation" was signed between the National Museum of Korea and the Uffizi Gallery.

During this state visit, Italy extended special courtesies to President Lee. When the presidential plane entered Italian airspace, two Italian Air Force Eurofighter jets escorted the aircraft. At the state banquet, President Sergio Mattarella awarded President Lee the Knight Grand Cross of the Order of Merit of the Italian Republic, Italy’s highest honor for foreign leaders. This is the first time President Lee has received a decoration from a foreign government since taking office.

Meanwhile, following his state visit to Italy, President Lee will continue with an official visit to the Vatican. On June 14, he attended the "Special Mass for Peace and Solidarity" at St. Paul Outside the Walls Basilica, emphasizing the virtuous cycle of peace on the Korean Peninsula and worldwide. On June 15, he is scheduled to meet with Pope Leo XIV and also hold talks with Vatican Secretary of State Pietro Parolin. After completing his Vatican visit, President Lee will travel to Evian, France, to attend the Group of Seven (G7) Summit, continuing his multilateral diplomacy in Europe.

This content was produced with the assistance of AI translation services.