Korea and Chile Begin FTA Overhaul... President Lee: "Creating Business Opportunities, Strengthening Cooperation in New Industries"

Announcement Following Korea-Chile Summit
Expanding the FTA to New Fields Such as AI and Defense Industry
Strengthening Cooperation on Minerals Including Copper and Lithium
Upgrading the Mineral Resources Partnership Committee to Ministerial Level
Polar Research Collaboration... Kast: "President Lee, Invited to Antarctica"
Memorandum of Understanding on Security Cooperation Signed

On the occasion of President Lee Jae-myung's official visit to Chile, the Korean government has begun work to overhaul its Free Trade Agreement (FTA) with Chile. The Korea-Chile FTA, concluded 22 years ago, has been mainly focused on agricultural products, but there are plans to expand the scope of the agreement to include new industries such as artificial intelligence (AI).

President Lee Jae-myung and President José Antonio Kast of Chile shake hands after a joint press conference at the Presidential Palace in Santiago on the 30th (local time). 2026.7.31 Yonhap News Agency.

After a summit with President José Antonio Kast at the La Moneda Presidential Palace in Santiago on the 30th (local time), President Lee announced at a joint press conference that "the Korea-Chile FTA Joint Committee will be reactivated for the first time in ten years." The Joint Committee oversees the implementation of the FTA's provisions and reviews trade and investment issues between the two countries. While such committees can be established by mutual agreement among FTA partners, this time, the focus will be on discussing the revision of the Korea-Chile FTA.

The two countries aim to upgrade the way they cooperate through the revision of the FTA. Chile was Korea's first FTA partner, and over the 20 years since the agreement took effect in 2004, trade between the two countries has grown more than fourfold. However, trade has remained limited to a small number of products, such as agricultural products and automobiles. The goal of the Joint Committee going forward is to modernize the FTA so that the two countries can cooperate across a wide range of fields, including not only trade but also AI, digital technology, shipbuilding, and defense industry.

President Lee also explained in an interview with EFE, a Spanish news agency, released on the 29th, that "through the FTA Joint Committee, we seek to advance discussions on modernizing the agreement and further develop our economic partnership." He added, "The aim is not merely to revise trade rules, but to create business opportunities, foster innovation, and strengthen cooperation in emerging industries."

Cooperation on critical mineral supply chains will be further strengthened. President Lee emphasized, "With Chile as the world's leading producer of copper and the country with the largest lithium reserves, and Korea as a leader in advanced industries such as semiconductors and batteries, the two countries are natural and ideal partners for building critical mineral supply chains." At the Korea-Chile Business Roundtable held on the same day, he said, "We look forward to seeing more joint ventures like the one between LS and Codelco, Chile's state-owned enterprise, expand in the future."

President Kast also underscored the importance of the critical minerals his country possesses. He remarked, "There is a saying in Korea that 'even a piece of paper is easier to lift together.' The exchange of critical minerals between Korea and Chile can be viewed from this perspective." President Kast went on to refer again to Chile's abundant resources such as lithium and copper, noting, "These are extremely important factors for Korea’s advancement as well."

President Lee Jae-myung is heading to the event hall after taking a commemorative photo with participants at the Korea-Chile Business Roundtable at a hotel in Santiago, Chile, on the 30th (local time). 2026.7.31 Yonhap News Agency

Following the determination of both leaders to cooperate, the two countries signed a memorandum of understanding (MOU) on critical minerals on this day. Through the Mineral Resources Partnership MOU, Korea and Chile agreed to elevate the joint committee on mineral resources partnership to the ministerial level and to establish a director-level working channel. There will also be comprehensive cooperation across the entire value chain, including the development, production, processing, and utilization of major minerals such as lithium and copper, as well as technological cooperation and personnel exchanges. According to the Office of the President, "This will enhance the stability of mineral supply from Chile, which amounts to approximately 2.1 billion dollars annually, and establish an institutional foundation supporting Korean companies’ entry into the local market."

The two countries also agreed to strengthen cooperation in polar research. Korean researchers stationed at King Sejong Station in Antarctica use Punta Arenas in southern Chile as their access point and supply base. Accordingly, the relevant research institutions in both countries have revised their memorandum of understanding on polar research cooperation, first signed in 2012 and amended in 2018. This revision widens the scope of cooperation to include eco-friendly base operations, environmental and ecosystem issues, and Antarctic governance. President Kast even issued a surprise invitation for President Lee to visit Antarctica.

A memorandum of understanding on security cooperation was also signed. This MOU includes information sharing and joint operations for the protection of overseas nationals and joint response to transnational crimes, increased collaboration in the arrest and extradition of fugitives, and transfer of Korean-style public security systems. The purpose is to connect law enforcement authorities of the two countries and strengthen the global security cooperation network, including Latin America. In addition, the two countries exchanged two more MOUs: one on maritime safety and security cooperation, and one on investment cooperation.

President Lee Jae-myung and First Lady Kim Hye-kyeong, after completing an official visit to Chile, are greeting the farewell party on the Air Force One at Arturo Merino Benitez International Airport in Santiago on the 30th (local time). 2026.7.31 Yonhap News Agency
Photo by Yonhap News

Meanwhile, the Chilean government has announced plans to dispatch a large-scale public-private economic delegation to Korea in September. Patricio Torres, Vice Minister of Foreign Affairs of Chile, stated at the Korea-Chile Business Roundtable, "This delegation will include companies, economic organizations, and related institutions to pursue ways to expand cooperation in trade, investment, innovation, technology, and new industries, as well as supply chain partnerships. This also demonstrates our strong determination to maintain the momentum of cooperation being forged today by the highest representatives of the governments and business communities of both countries."

Attendees at the Korea-Chile Business Roundtable included Chang Inhwa, Chairman of POSCO; Koo Ja-eun, Chairman of LS; Choi Yoonbum, Chairman of Korea Zinc; Ryu Jaecheol, President of LG Electronics; Chung Inseop, President of Hanwha Ocean; Choi Sooyoun, CEO of Naver; Jang Jaehun, Vice Chairman of Hyundai Motor Company; and Lee Donghoon, CEO of SK Biopharm.

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