President Lee to "Modernize Korea-Chile FTA"... Also Aims to Expand Key Mineral Supply Chains

Arrives in Chile After Brazil... Summit With President Kast

Pushing to Modernize the FTA for New Realities Like Digital Trade, AI, and Carbon Neutrality

Signing Mineral Resource Partnership MOU... Connecting With Advanced Manufacturing Capabilities

President Lee Jae-myung arrived in Chile, the second destination of his South American tour, on July 29 (local time). This marks the first visit by a Korean president to Chile in 11 years. In his first summit with President Jose Antonio Kast, President Lee will seek to modernize the Korea-Chile Free Trade Agreement (FTA)—the first ever signed by Korea—so it aligns with the digital and artificial intelligence (AI) era, while also launching efforts to establish a key minerals supply chain to connect Chile’s lithium and copper resources with Korea’s advanced manufacturing sector.

President Lee Jae-myung and First Lady Kim Hye-kyung are saluting the national flag at a dinner meeting with compatriots held at a hotel in Santiago, Chile on the 29th (local time). 2026.7.30 Yonhap News Photo by Yonhap News

The Korean Air Force One carrying President Lee and First Lady Kim Hye-kyung landed at Arturo Merino Benitez International Airport in Santiago, Chile’s capital, on the afternoon of the same day. President Lee kicked off his official one-night, two-day visit with a dinner meeting with Korean expatriates in the evening. On July 30, he will lay a wreath at the statue of Chilean independence hero Bernardo O’Higgins before attending an official welcome ceremony at the presidential palace. The schedule then includes a summit with President Kast, a signing ceremony for a memorandum of understanding (MOU), and an official luncheon. The final item will be a Korea-Chile business roundtable attended by business leaders of both countries, before President Lee departs for Argentina.

"The FTA Needs to Evolve to Reflect New Economic Realities"

The main focus of the summit is the modernization of the Korea-Chile FTA, which took effect in 2004. The Korea-Chile FTA was not only Korea’s first FTA but also the first concluded between any Asian and Latin American nation. While it has provided the institutional foundation for expanding trade between the two countries, it does not yet adequately address today’s trade issues such as digital trade, AI, carbon neutrality, and supply chain security.

According to the Argentine media outlet Infobae, President Lee stated in a written interview with EFE News Agency released ahead of his visit to Chile that "today's economy is being reorganized around digital trade and AI, clean technology, resilient supply chains, and the transition to carbon neutrality," and emphasized that "the Korea-Chile FTA must evolve to reflect these new realities."

President Lee Jae-myung gives a greeting at a dinner meeting with compatriots held at a hotel in Santiago, Chile, on the 29th (local time). 2026.7.30 Yonhap News Agency

The two countries plan to restart the FTA Joint Free Trade Commission and accelerate discussions on modernizing the agreement. Negotiations are expected to expand beyond tariffs and market access for goods to areas such as the digital economy, environment, labor standards, gender equality, intellectual property rights, and collaboration in new industries. Should President Lee and President Kast reconfirm their commitment at the summit, the long-stalled talks may gain renewed momentum.

President Lee also expressed his expectation that close cooperation will continue under President Kast, who was inaugurated in March this year. He said, "The reason for my confidence is that Korea-Chile relations have never relied on just one country," adding, "Since the establishment of diplomatic ties in 1962, Korea and Chile have built a friendship based on mutual trust, shared values, and an institutional foundation strengthened over more than 60 years."

Combining Lithium, Copper and Korean Manufacturing... Pursuing a 'Minerals Alliance'

Alongside the FTA modernization, cooperation on key mineral supply chains is also a major summit agenda. On this visit, the two countries are set to sign a memorandum of understanding (MOU) for a mineral resources partnership. The idea is to connect Chile’s rich lithium and copper resources with Korea’s advanced manufacturing sectors like battery, electric vehicle, and semiconductor production. Copper is widely used in AI data centers, power grids, and electric vehicles, while lithium is a vital material for the secondary battery industry. With the escalating competition for key minerals amid US-China rivalry and resource nationalism, strengthening ties with Chile brings new opportunities for Korean companies to diversify their supply chains. The government’s aim is not only to import minerals, but also to establish a supply network spanning local development, refining, materials, components, and advanced manufacturing in the region.

In a written briefing, Chief Presidential Spokesperson Kang Yoo-jung described Chile as "a global trade hub connected to economic zones and free trade networks comprising about 89% of the world’s GDP, and a world-leading producer of copper and lithium," noting that "we will strengthen the foundations for cooperation in supply chains covering resources and energy—including key minerals—and further expand trade and investment."

President Lee Jae-myung and First Lady Kim Hye-kyung are posing for a commemorative photo with flower attendants at the Korean compatriots dinner meeting held at a hotel in Santiago, Chile on the 29th (local time). 2026.7.30 Yonhap News Agency

The summit will also address cooperation in areas that affect both the general public and businesses, including infrastructure, defense industry, public safety, maritime security, and culture. The two countries plan to fully resume high-level exchanges and intergovernmental consultative bodies, and they will also work together for the successful co-hosting of the 4th UN Ocean Conference in 2028.

The final event in Chile, the business roundtable (BRT), will bring together around 30 companies from both nations. Participating businesses will discuss ways to collaborate on stabilizing key minerals supply chains and expanding investments, as well as on future growth sectors such as AI and digital technologies, eco-friendly energy, bio-industry, and Korean consumer goods.

Ahead of the summit, President Lee highlighted his personal connection with President Kast on X (formerly Twitter), noting, “This will be my first meeting with President Kast, who, like me, has a background in law. I have heard that he lives with several dogs, and as a fellow pet owner, I feel a special affinity.” He added, “If the opportunity arises, I’d like to ask how he remembers the names of all his dogs.”

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