Lee: "Korea-Chile FTA Must Evolve to Reflect New Realities"...Pushing for Alliance on Lithium and Copper Supply Chains

Interview with Foreign Media Ahead of Summit with President Kast of Chile

Expanding Trade Norms to AI, Digital Trade, Clean Technologies, Labor, and Gender Equality

Building a Critical Minerals Value Chain from Resource Development and Proce

President Lee Jae-myung, who is on an official visit to Chile, announced his plan to transform the Korea-Chile Free Trade Agreement (FTA)—which marks its 22nd year since implementation—into a 'next-generation trade agreement' that encompasses artificial intelligence (AI), digital trade, and clean technology. He also raised the establishment of a critical minerals supply chain, combining Chile's lithium and copper resources with Korea's advanced manufacturing capabilities, as a key agenda item for the summit meeting. The goal is to elevate the bilateral economic relationship, which began with Korea's first-ever FTA, from simple goods trade to an industrial and technological alliance.

President Lee Jae-myung and First Lady Kim Hye-kyung are disembarking from Air Force One upon arrival at Arturo Merino Benitez International Airport in Santiago, Chile, on the 29th (local time). 2026.7.30 Yonhap News Photo by Yonhap News

According to Infobae, an Argentine media outlet, on the 29th (local time), in a written interview with EFE News conducted prior to his visit to Chile, President Lee stated, "Today's economy is being restructured around digital trade, AI, clean technologies, resilient supply chains, and the transition to carbon neutrality," and added, "The Korea-Chile FTA must evolve to reflect this new reality." President Lee arrived in Santiago, Chile, on the same day as the second stop of his South American tour and is scheduled to hold a summit with Chilean President José Antonio Kast on the 30th.

President Lee identified the modernization of the FTA as his highest priority for this visit to Chile. He emphasized, "The two countries should resume the FTA Free Trade Commission, advance discussions on modernizing the agreement, and strengthen cooperation in the area of resilient supply chains to further develop the economic partnership."

He made it clear that FTA modernization should not be limited to revising tariffs or expanding access to the goods market. President Lee said, "It is not just about amending trading rules, but about creating new business opportunities, supporting innovation, and enhancing cooperation in emerging industries." He also expressed his intention to include new trade norms, such as labor standards and gender equality, in the agreement.

The Korea-Chile FTA, which came into force in April 2004, was Korea's first-ever free trade agreement and the first to be concluded between an East Asian and a Latin American country. Since establishing a framework for FTA modernization negotiations in 2018, the two countries have engaged in talks on market access, the environment, labor, gender equality, intellectual property rights, and more. By April 2024, a total of nine rounds of official negotiations had taken place, but a final deal had not yet been reached. Last year, the bilateral trade volume totaled approximately $6.8 billion.

This summit is expected to give renewed momentum to negotiations, which had stagnated for an extended period. In October of last year, President Lee agreed with then-Chilean President Gabriel Boric, at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, to seek mutually beneficial ways to improve the FTA. Although a change in administration occurred in March of this year when the Kast government took office in Chile, President Lee believes the cooperative stance between the two countries will continue.

He stated, "The Korea-Chile relationship has never depended on any particular government," and continued, "Since the establishment of diplomatic relations in 1962, the two countries have built a close friendship based on mutual trust, shared values, and an institutional foundation solidified over more than 60 years." Chile was also the first South American country to recognize the government of the Republic of Korea in 1949.

President Lee Jae-myung is greeting Foreign Minister Pérez Mackenna, who came to welcome him at Arturo Merino Benítez International Airport in Santiago, Chile, on the 29th (local time). 2026.7.30 Yonhap News Agency

Another pillar of bilateral economic cooperation is critical minerals. President Lee revealed that the two countries plan to sign a memorandum of understanding (MOU) on mineral resources partnership during the summit. He explained, "The goal is to cooperate in order to stabilize the global supply chain for critical minerals. Chile has the world's largest deposits of lithium and copper, whereas Korea offers stable demand and an advanced industrial base."

The vision is to go beyond the level of buying and selling minerals by combining the strengths of both countries to build a value chain that extends from development and processing to materials and parts production, and advanced manufacturing. Copper is used widely in power grids, AI data centers, and electric vehicles, while lithium is a core raw material for the secondary battery industry. The stable procurement of Chilean critical minerals signifies the diversification of Korea's supply chains for the semiconductor, battery, and electric vehicle industries.

President Lee stated, "It will serve as a foundation for forming a competitive value chain ranging from mineral development and processing to advanced manufacturing." He also announced plans to expand cooperation in other complementary sectors with high synergy, including infrastructure, the defense industry, public safety, and maritime safety.

In the maritime sector, the two countries agreed to work closely together for the successful co-hosting of the 4th United Nations Oceans Conference in 2028. Korea and Chile are redefining their relationship from simply being Pacific trading partners to becoming strategic collaborators on supply chains, security, climate, and ocean-related agendas.

After reaching an agreement in Brazil to form a working group to accelerate negotiations for a trade agreement between Korea and MERCOSUR—the Southern Common Market of South America—President Lee is now pursuing the modernization of the FTA and the creation of a critical minerals supply chain with Chile. The plan is to create a new axis of economic cooperation to counter protectionism and supply chain fragmentation by combining South America's resources and market with Korea's manufacturing and cutting-edge technology. Upon completing his Chilean schedule, President Lee will move on to Argentina for a summit meeting with President Javier Milei.

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