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 C

South Korea and Mexico have agreed to establish a consultation channel to promote the signing of a trade agreement and will set up a new financial support system worth 100 million dollars. The two countries also decided to expand cooperation in advanced industries such as artificial intelligence (AI), space, and defense·aerospace. In particular, they will consider the possibility of local production of aerospace products, including the FA-50 by Korea Aerospace Industries (KAI), in Mexico. This raises attention as bilateral economic cooperation could expand beyond trade to building 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 the summit held in Mexico City on the 24th (local time), South Korea and Mexico signed a total of 17 memorandums of understanding (MOUs), declarations, and letters of intent spanning the economy, industry, resources, finance, AI, space, aerospace, and other fields. Of these, seven agreements were exchanged in the presence of both heads of state.

The core of the economic field is the “Economic and Industrial·Resource Cooperation Initiative.” The two countries will establish a joint director-level committee and working groups, exchange mineral resource statistics and information, and share technologies and experiences in sustainable mining. The Office of the President expressed hope that these efforts will accelerate the signing of a trade agreement and lay an institutional foundation for industrial and resource cooperation between the two countries.

Corporate financial support will also be strengthened. The Export-Import Bank of Korea and Mexico’s National Foreign Trade Bank have signed an MOU to set a new trade finance limit of 100 million dollars. Trade finance refers to a method in which local financial institutions provide funds to companies purchasing Korean goods or services. ICT, automotive, and biotechnology were mentioned as key cooperation fields. The financial support base will be expanded not only for Mexican companies purchasing Korean products but also for Korean companies expanding into Mexico.

Cooperation to reduce non-tariff barriers and risk factors in the trading process is also included. The customs authorities of both countries will increase the exchange of risk information, including on narcotics, counterfeit goods infringing on intellectual property rights, and circumvention exports. They will also share experiences in utilizing AI-based advanced inspection equipment and digital technologies. In the intellectual property sector, both sides will strengthen cooperation in patent, trademark, and design examinations, AI-based IP administration systems, the exchange of patent data, and the protection and enforcement of intellectual property rights.

In advanced industries, AI, space, and aerospace have been presented as new pillars for cooperation. The foreign ministries of both countries agreed through the “AI Cooperation Declaration” to jointly review the implementation of the APEC AI Initiative, which was adopted under South Korean leadership. When Mexico assumes the APEC chairmanship in 2028, an interim review meeting is planned to be co-hosted.

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, a framework will be established for cooperation in space science, information and communications, launch systems, and technological development. The plan is to promote joint government research and technical cooperation while also laying the groundwork for Korean enterprises to enter the Mexican market.

Cooperation in the aerospace industry is even more specific. KAI, POSCO International, and the Mexican Federation of the Aerospace Industry will work together on the operation and maintenance technology for the FA-50, drones, satellites, and will also build local supply chains, provide financial backing, and foster specialized talent. In particular, the possibility of industrial cooperation with local firms for the production of aerospace products developed and manufactured by KAI in Mexico will be assessed. Starting with the FA-50, cooperation will be expanded to include drones, satellites, and airframe structures, in line with efforts to secure a foothold for entry into Latin American and North American markets.

A separate MOU on defense cooperation was also signed. The two countries agreed to explore potential cooperation in military education and training, defense research and development, and the defense industry. This will serve as an institutional framework to connect Mexico’s demand for military modernization and maritime security with new business opportunities for Korea’s defense industry.

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