Argentine Crude Oil Imports to Begin Next Year... Double Taxation Avoidance Agreement Finalized

President Lee Holds Summit with Argentina on the 31st

Boosting Energy Resilience by Importing Argentine Crude Oil

Double Taxation Avoidance Agreement Finalized

"Will Ease Tax Burden for Korean Companies in Argentina"

President Lee Jae-myung's official visit to Argentina is expected to pave the way for the import of Argentine crude oil starting next year. An agreement to avoid double taxation has also been concluded to reduce the double taxation burden on Korean companies.

On July 31 (local time), President Lee held a 58-minute summit meeting with Argentine President Javier Milei, where these issues were discussed. Wi Sung-lak, Director of National Security, shared the details of the summit at a press center in Buenos Aires, the capital of Argentina, stating, "Our companies made a pilot introduction of Argentine crude oil this year, and based on this, imports are scheduled to begin next year."

President Lee Jae-myung and President Javier Milei shake hands after completing an official commemorative photo at the welcoming ceremony held at the Presidential Palace in Buenos Aires, Argentina on the 31st (local time). 2026.7.31 Photo by Yonhap News

Director Wi explained, "This is expected to diversify our crude oil import sources, which have been concentrated in the Middle East, by expanding them to South America, thereby reducing geopolitical uncertainties and enhancing the nation’s capacity to manage energy supply and demand. The two countries have also agreed to not only cooperate on crude oil, but to broaden the scope of energy cooperation to include natural gas and nuclear energy, and to jointly identify specific collaborative projects."

The agreement to avoid double taxation between the two countries has also been finalized. Director Wi stressed, "It is expected that this agreement will reduce the double taxation burden for Korean companies operating in Argentina and improve the predictability of investment conditions." He further added, "The two countries have also agreed to quickly resume negotiations for a trade agreement between Korea and MERCOSUR (Southern Common Market), with the goal of enhancing Korean companies’ access to the South American market."

In the food sector, both countries will actively promote discussions to designate Korea as a high sanitary surveillance country by Argentina. This is expected to shorten the time and reduce the costs required for registering Korean foods locally, thereby facilitating the expansion of K-Food into the Argentine market, according to the Office of the President.

On the occasion of the summit, a memorandum of understanding (MOU) on cooperation in key minerals was also signed. The MOU sets out that companies from both countries will pursue investments and joint projects throughout the value chain, including exploration and mining of lithium. Director Wi stated, "The Argentine government reaffirmed its commitment to continued support for lithium projects pursued by Korean companies, and investment opportunities will be further expanded for Korean businesses in other key minerals such as copper."

In addition, both countries will work toward the prompt signing of a mutual recognition agreement for driver’s licenses, and seek to identify new areas for cooperation in defense, space, Antarctic research, and healthcare. Further consultations will be held to expand cultural exchanges, educational partnerships, and people-to-people exchanges, thereby broadening interactions among future generations of both nations.

Director Wi commented, "Both leaders agreed that this visit has laid the foundation for a new leap forward in bilateral relations, and they emphasized the need to expand practical and mutually beneficial cooperation in various fields such as trade, investment, key minerals, energy supply chains, artificial intelligence, defense, and quarantine. In particular, leveraging the strengths both leaders share in prioritizing efficiency and speed, they agreed to rapidly deliver tangible results that the public can truly experience."

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