Korea and Mexico Establish Economic, Industrial, and Resource Cooperation Channel... Exploring Local Production Cooperation for the FA-50

President Yoon's State Visit:

17 MOUs, Declarations, and Letters of Intent Signed in Economy, Industry, Resources, Finance, and AI

Notable Steps Toward a Trade Agreement and $100 Million in Financial Support

KAI's Aerospace Products Considered for Local Production in Mexico, Targeting Central and North American Markets

South Korea and Mexico are establishing a consultation channel to promote the conclusion of a trade agreement and are introducing a new financial support system worth 100 million dollars. The two countries also agreed to expand cooperation in advanced industries such as artificial intelligence (AI), space, and defense & aerospace. Notably, they will explore the possibility of local production in Mexico of aerospace products, including the FA-50 from Korea Aerospace Industries (KAI), raising expectations that bilateral economic cooperation will expand from traditional trade to the establishment of local supply chains.

President Lee Jae-myung, who is on a state visit to Mexico, salutes the national flag at the official welcoming ceremony held at the National Palace in Mexico City on the 24th (local time). On the right is President Claudia Sheinbaum. 2026.9.25 Yonhap News Photo by Yonhap News

On the occasion of a summit held in Mexico City on the 24th (local time), South Korea and Mexico signed 17 memorandums of understanding (MOUs), declarations, and letters of intent across diverse fields including the economy, industry and resources, finance, AI, space, and aerospace. Of these, seven were exchanged in the presence of both heads of state.

The core of the economic sector is the “Economic, Industrial, and Resource Cooperation Initiative.” The two governments will set up a joint committee at the director-general level and working groups, exchange statistics and information on mineral resources, and share technology and experience related to sustainable mining. The Office of the President expects this to promote the conclusion of a trade agreement and establish an institutional foundation for cooperation in industry and resources between the two countries.

Support for corporate financing will also be strengthened. The Export-Import Bank of Korea and Mexico’s Bancomext (Banco Nacional de Comercio Exterior) signed an MOU to establish a new 100 million dollar credit line. This credit line will provide funding for local financial institutions to purchase Korean goods or services. Key fields for cooperation include ICT, automotive, and biotechnology. The financial support base is expected to expand not only for Mexican companies purchasing Korean products but also for Korean companies entering the local Mexican market.

Cooperation to reduce non-tariff barriers and risk factors in the trade process is also included. The customs authorities of both countries agreed to expand the exchange of risk information, such as on drug trafficking, counterfeit goods infringing on intellectual property rights, and circumvention exports, and to share experiences utilizing AI-based advanced inspection equipment and digital technology. In the field of intellectual property, the two countries will strengthen cooperation in patent, trademark, and design examination, AI-based IP administration systems, patent data exchange, and IP rights protection and enforcement.

In advanced industries, AI, space, and aerospace have been identified as new axes of cooperation. Through an “AI Cooperation Declaration,” the foreign ministries of both countries agreed to jointly monitor the implementation of the APEC AI Initiative, which was adopted under the leadership of South Korea. In 2028, when Mexico chairs APEC, both countries plan to jointly hold a mid-term review meeting.

President Lee Jae-myung and President Claudia Sheinbaum of Mexico are holding a private meeting at the Presidential Palace in Mexico City on the 24th (local time). 2026.9.25 Yonhap News Agency

In the space sector, the two countries will build cooperation systems in space science and information technology, launch systems, and technology development. They intend to promote joint research and technological cooperation at the government level, while also establishing a foundation for Korean companies to advance into the Mexican market.

Cooperation in the aerospace industry will be even more concrete. KAI, Posco International, and the Mexican Federation of the Aerospace Industry agreed to pursue cooperation in the operation and maintenance of technologies related to the FA-50, unmanned aerial vehicles, and satellites, as well as the establishment of local supply chains, financial support, and workforce development. In particular, they will review the possibility of industrial cooperation with local companies in Mexico to manufacture aerospace products developed and produced by KAI within Mexico. Starting with the FA-50, the plan is to expand the scope of cooperation to include drones, satellites, and airframe structures, thereby securing a foothold for entry into the Central and North American markets.

A separate MOU on defense cooperation was also signed. The two countries will identify opportunities for cooperation in military education and training, defense research and development, and the defense industry. This institutional framework is expected to create new business opportunities for the Korean defense industry by connecting Mexico's military modernization and maritime security needs with Korean capabilities.

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