President Lee Wraps Up First South America Summit Diplomacy in Brazil... Heads to Chile for the 'First FTA'

Korea and MERCOSUR to Resume Trade Talks This Year
Going Beyond Extraction: Building Local Processing and Supply Chains for Key Minerals
Shared Background as 'Young Factory Workers' Highlighted with Lula
Visit to Brazil's Metalworkers' Union Underscores Leaders' Mutual Trust
Modernizing the FTA with Chile: Exploring Cooperation on Copper and Lithium Supply Chains

Through his three-day, two-night state visit to Brazil, President Lee Jae-myung established a framework for economic security cooperation spanning the resumption of MERCOSUR (Southern Common Market) trade agreement negotiations, vital minerals including rare earth elements, defense and aerospace, and eco-friendly energy. Notably, the two leaders agreed to immediately activate a high-level, dedicated direct channel for economic cooperation to enhance the efficacy of their partnership. They also decided to create a joint platform to directly address challenges faced by businesses operating in both countries. After completing his itinerary in Brazil, President Lee will continue his official visit from the 29th (local time) in Chile, the second stop of his South America tour.

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

The core achievement of this visit to Brazil lies in forging a cooperative structure that secures both supply chains and markets with South American countries. President Lee and President Luiz Inácio Lula da Silva of Brazil proclaimed this year as "the first year of a leap forward in the strategic partnership between Korea and Brazil" during their summit, announcing the launch of an Economic and Trade Committee and the establishment of a bilateral working group to resume trade agreement negotiations between Korea and MERCOSUR, the South American Common Market.

In particular, both sides are seeking to officially announce the resumption of negotiations at the December MERCOSUR summit this year. Brazil is thus being positioned as a base for Korean companies seeking to enter the South American market. Amid the provisional implementation of the EU-MERCOSUR trade agreement and Japan’s engagement in Economic Partnership Agreement negotiations, Korea saw the need to accelerate its own negotiation process. This is also why Kim Yong-beom, policy chief at the Presidential Office, and Geraldo Alckmin, Vice President of Brazil, were appointed as officials responsible for follow-up cooperation in both countries.

On the economic security front, the joint declaration on key strategic minerals is especially noteworthy. The two countries agreed not only to extract and supply vital minerals like rare earth elements to Korea, but also to build a supply chain in Brazil covering refining, processing, and even component and product manufacturing. This approach recognizes Brazil’s resource sovereignty and industrial policy autonomy while combining it with Korean technology and investment. Cooperation in the defense and aerospace sectors is another highlight. President Lee’s inspection of Embraer's C-390 transport aircraft, which is to be introduced into the South Korean Air Force, immediately after arriving in Brazil was part of a plan to expand defense product purchases into broader collaboration with the civil and military aviation sectors.

President Lee’s initiative was further detailed at the Korea–Brazil Business Roundtable (BRT) held in São Paulo. Hyundai Motor proposed technological collaboration in green hydrogen, hydrogen trucks, and small modular reactors (SMRs), while POSCO agreed to expand cooperation from iron ore to supply chains for rare earth elements and strategic minerals. Korea Aerospace Industries (KAI) and Embraer signed a memorandum of understanding for cooperation in civil aircraft and aerospace sectors. POSCO International formed an agreement with Australian resource firm Meteoric Resources for collaboration on rare earth supply chains. In total, seven memoranda of understanding (MOUs) were signed in this round.

'From Young Factory Workers to Leaders': Two Presidents, a 140-Minute Summit and a Finger-Heart

President Lee Jae-myung and Brazilian President Luiz Inácio Lula da Silva are making finger hearts toward the press after a joint press conference at the Brasilia Presidential Palace on the 27th (local time). 2026.7.28 Yonhap News Agency

Alongside the economic results, the special bond between President Lee and President Lula drew considerable attention. The two leaders met again after a five-month interval since President Lula’s state visit to Korea in February. President Lula welcomed President Lee with a hug at Palácio da Alvorada, his official residence, and their meeting extended for approximately 140 minutes—longer than initially scheduled. After the joint press conference, the two stood together making finger-heart gestures. Both presidents share the common experience of having grown up in poor working-class families, laboring as young factory workers, and overcoming adversity to become national leaders. During the joint press conference, President Lula remarked, “Both of us have come from extremely difficult backgrounds. That’s why we truly understand the importance of each and every citizen, student, and worker.”

The following day, President Lee made an unannounced visit to the ABC Metalworkers' Union headquarters in São Paulo, the starting point of President Lula’s political journey. Touring President Lula’s former office, where he served as a union leader during Brazil’s military regime, President Lee shared that he himself made watches in a factory as a child. Later, on social media, President Lee wrote, “Creating a world where labor is respected is an imperative both in Brazil and Korea.”

The special bond between the two leaders was also evident in the Brazilian protocol. Their official schedule began with a welcoming ceremony at Palácio da Alvorada, the presidential residence. Conducting the agenda at the residence, rather than the official presidential office (Palácio do Planalto), was seen as a gesture reflecting their relationship. At the cultural performance hosted for President Lee and the First Lady at the Itamaraty Palace—the symbol of Brazilian diplomacy—Brazilian music and the Korean pop song ‘Sangnoksoo’ (Evergreen Tree) were performed.

In Chile, Modernizing the 'First FTA': Copper and Lithium Supply Chains in Focus

President Lee Jae-myung and Brazilian President Luiz Inácio Lula da Silva held a small-scale meeting at the Presidential Palace in Brasilia on the 27th (local time). 2026.7.28 Yonhap News Agency

Upon arriving in Chile, President Lee began his official visit with a dinner meeting with the Korean community in Santiago that evening. On the 30th, he is scheduled to lay a wreath at the statue of Chilean independence hero Bernardo O'Higgins, followed by a summit with President Jose Antonio Kast at the Moneda Palace. The schedule includes an official welcoming ceremony, signing of memoranda of understanding, a joint press conference, official luncheon, and participation in the Korea–Chile BRT.

The main topics for the Chile visit are the modernization of the Korea–Chile Free Trade Agreement (FTA) and the supply chain for critical minerals. Chile was the first country with which Korea signed a free trade agreement. With over 20 years having passed since the agreement entered into force in 2004, the government recognizes the need to update the agreement to reflect new developments such as digital trade, supply chains, and new industries. Cooperation with Chile—one of the world’s major producers of copper and lithium—also expands the resource diplomacy initiated in Brazil to the western part of South America.

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