President Lee Meets Korean and Brazilian Business Leaders, Orders Rapid Launch of Presidential Office Policy Chief–Brazilian Vice President Direct Line… Seven MOUs Signed Between Companies

President Lee Attends Korea-Brazil BRT

"Accelerating Resumption of Mercosur Agreement"

Kim Yongbum and Vice President Alckmin Designated as Dedicated Coordinators

Early Launch of Joint Platform to Directly Address Corporate Challenges

During his state visit to Brazil, President Lee Jae-myung has activated a high-level direct line dedicated to economic cooperation between Korea and Brazil and ordered the establishment of a joint platform to directly address the challenges faced by companies operating in both countries. Korea and the Southern Common Market, MERCOSUR, have also agreed to promptly resume trade agreement negotiations. Seizing the momentum of President Lee's state visit, companies from both countries signed seven memorandums of understanding (MOUs) spanning aerospace, artificial intelligence (AI)-based digital healthcare, and rare earth supply chains.

President Lee Jae-myung is speaking at the Korea-Brazil Business Roundtable held at a hotel in São Paulo, Brazil on the 28th (local time). From the right, Euisun Chung, Executive Chair of Hyundai Motor Group; Ryu Jin, Chairman of the Korea Economic Association; Kim Jung-kwan, Minister of Trade, Industry and Energy; President Lee Jae-myung; Geraldo Alckmin, Vice President of Brazil; Marcio Elias Roza, Minister of Development, Industry, Trade and Services of Brazil; and Laudemir Muller, Chairman of the Brazilian Trade and Investment Promotion Agency (ApexBrasil). 2026.7.29 Yonhap News Agency

Kim Yongbeom, policy chief at the Presidential Office, held a post-briefing on the Korea-Brazil Business Roundtable (BRT) in São Paulo, Brazil, on the 28th (local time), stating, "President Lee appointed Vice President Geraldo Alckmin of Brazil and myself as the dedicated team for Korea-Brazil economic cooperation." The roundtable, held at a downtown São Paulo hotel, was co-hosted by the Korea Business Council and Brazil’s trade and investment promotion agency ApexBrasil, and attended by over 40 government and business representatives from both countries, including President Lee and Vice President Alckmin. The participants designated manufacturing and infrastructure, high-tech industries, and consumer goods & distribution as the three main cooperation sectors and discussed opportunities for new investments and joint ventures.

In his closing remarks, President Lee emphasized, "While inter-governmental economic and industrial cooperation is advanced by businesses, corporate collaborations remain difficult unless tariffs and regulatory issues at the governmental level are resolved." He requested that the dedicated personnel from both countries coordinate these issues. As a follow-up, both governments will promptly launch a platform to directly listen to and address the difficulties of companies already in or wishing to enter each other's markets and report the outcomes to both heads of state.

"Bilateral trade at 14.3 billion dollars falls short of potential"…Quickening pace for renewed MERCOSUR negotiations

President Lee underlined that, considering the economic size and industrial structure of both countries, the current trade volume remains at around 10 billion dollars, which he deemed insufficient. He stressed the need to accelerate discussions for the Korea-MERCOSUR trade agreement. Last year, trade between Korea and Brazil reached 14.3 billion dollars.

President Lee also pointed out the complex interests surrounding the market opening for Korean industrial goods to Brazil as well as the entry of Brazilian agricultural and livestock products into Korea. Nonetheless, as market opening would benefit both countries, he asked Chief Kim and Vice President Alckmin to work out concrete compromises.

Kim, the policy chief, noted, "The MERCOSUR-European Union (EU) trade agreement provisionally took effect in May this year, and Japan also announced the start of economic partnership talks with MERCOSUR at the end of June," adding, "We too must move swiftly." He continued, "Brazil is the largest economy in South America and serves as a gateway to the region, making it a key to the diversification of Korea's export markets."

President Lee also urged Korean companies to pursue long-term localization strategies. "Korean companies should seek long-term, mutually beneficial gains rather than short-term, unilateral profits," he advised. "Look to expand local employment and proactively contribute to society over the long term."

President Lee Jae-myung is heading to the event hall after finishing a commemorative photo session with participants at the Korea-Brazil Business Roundtable held at a hotel in São Paulo, Brazil, on the 28th (local time). From the front row left: Euisun Chung, Executive Chair of Hyundai Motor Group; Laudemir Muller, Chair of ApexBrasil (Brazilian Trade and Investment Promotion Agency); Kim Jung-kwan, Minister of Trade, Industry and Energy; Geraldo Alckmin, Vice President of Brazil; President Lee Jae-myung; Márcio Elias Rosa, Minister of Development, Industry, Trade and Services of Brazil; Ryu Jin, Chair of the Korea Business Council; Francisco Gomes Neto, CEO of Embraer; and Cho Won-tae, Chair of Korean Air. July 29, 2026, Yonhap News.

From Hydrogen and SMRs to Rare Earths and AI…Comprehensive Expansion of Corporate Partnerships

Hyundai Motor Group, which attended the BRT, noted that since launching local production in Brazil in 2012, ten affiliates have entered the market, making Hyundai the fourth-largest carmaker in Brazil. The company also announced plans to pursue green hydrogen production, hydrogen truck deployment, and technological cooperation in small modular reactors (SMRs) aligned with Brazil's decarbonization policies. POSCO Group revealed plans to expand its traditionally iron ore-centered partnership with Vale, a major Brazilian mining company, to include core minerals such as lithium and rare earth elements. This initiative aims not merely at resource imports but at building local processing and supply chains, creating shared added value for both nations.

LG Electronics, which has maintained and steadily expanded its production base in Brazil for over 30 years, also reported that its new refrigerator plant in Paraná State began mass production this month. The company plans further collaboration in digital transformation in manufacturing and energy transition. Hanwha Ocean highlighted its participation in Petrobras’ floating production, storage, and offloading (FPSO) projects in Brazil. To expand local shipyard construction and production capacity, Hanwha Ocean requested expedited permit processes and support for Korean language education. Hanwha Aerospace expressed its intention to broaden its collaboration through participation in Brazil’s defense industry projects. Korean Air, highlighting its operation of the only direct cargo flight route to Brazil among Asian airlines, pledged to back expanded bilateral trade from a comprehensive logistics perspective and to deepen its partnership with Brazil’s Embraer, to which it already supplies aircraft fuselage parts.

Samsung Electronics, which entered the Brazilian market in 1987, currently employs approximately 5,000 local staff and expressed willingness to engage in additional collaboration in line with Brazil’s digital transformation policies. SK Biopharmaceuticals, following the launch of a new epilepsy drug with Brazilian pharmaceutical company Eurofarma, announced plans to expand cooperation into the fields of digital therapeutics and AI-based healthcare. Naver mentioned discussions for AI care services with the Brazilian government and shared its aim to use Brazil as a base for building an AI ecosystem across Central and South America.

Korea Aerospace Industries (KAI) stated its intention to evolve its relationship with Embraer—so far limited to supplying civil aircraft wing structures and electric vertical take-off and landing (eVTOL) aircraft components—into a strategic partnership that shares technological and business risks.

Aerospace, Digital Health, and Rare Earth MOUs…Efforts to Improve K-Beauty Regulations

On this occasion, companies from both countries signed a total of seven MOUs. KAI and Embraer signed an MOU for comprehensive cooperation and regular consultations in the fields of civil aviation and aerospace—a follow-up to the two countries’ joint next-generation civil aircraft development plan unveiled in February. SK Biopharmaceuticals and Eurofarma agreed to expand cooperation in AI-powered digital healthcare. POSCO International signed an MOU with Australia-based Meteoric Resources to secure stable supply chains for Brazil’s rare earth elements.

Chief Kim assessed, "These MOUs show that Korea-Brazil cooperation is expanding into high-value-added industries such as biotech, aerospace, and rare earths."

President Lee Jae-myung is speaking at the Korea-Brazil Business Roundtable held at a hotel in Sao Paulo, Brazil, on the 28th (local time). Photo by Yonhap News, July 29, 2026.

Support measures are also underway for the entry of K-beauty products into the Brazilian market. Amorepacific reported that Korean cosmetics imports to Brazil have increased more than fivefold over the past three years and called for improvements to the complicated distribution structure and certification procedures. Other companies, including APR, Gudai Global, and SiliconTwo, presented plans to establish local subsidiaries, expand product offerings, and requested improvements to the certification and trade environment.

President Lee remarked, "Korea and Brazil are like brother countries. I hope this roundtable serves as a springboard for both nations to achieve meaningful growth and success together." Chief Kim added, "If Korea’s innovative technology joins forces with Brazil’s abundant resources, we can jointly secure stable supply chains and take the lead in future industries. I will work directly with Vice President Alckmin on resuming Korea-MERCOSUR trade talks and ensuring tangible results in cooperation on key minerals, rare earths, and aerospace."

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