Korea and Mexico Conclude 7-Year Investment Protection Agreement Revision... Lee Says "Trade Agreement Is Crucial"

After Korea-Mexico Summit, President Lee Issues Joint Statement
New USD 100 Million Credit Line Established, Crude Oil Supply Chain Cooperation Strengthened
AI, Aerospace, and Defense Collaboration Expanded
Lee: "Joint Production of Korean

President Lee Jae-myung, currently on a state visit to Mexico, and Mexican President Claudia Sheinbaum have reached an agreement to amend the bilateral investment protection agreement, concluding negotiations that had continued for seven years. The two countries will also establish a 100 million US dollar credit line between their respective export-import banks and set up a new platform for cooperation in crude oil and key resource supply chains. President Lee emphasized the need for a trade agreement to further elevate bilateral trade and investment, suggesting the potential for expanded trade negotiations between the two nations in the future.

President Lee Jae-myung is speaking at a joint press conference with Claudia Sheinbaum, President of Mexico, held at the National Palace in Mexico City on the 24th (local time). 2026.9.25 Yonhap News Agency

On the 24th (local time), following a summit meeting with President Sheinbaum at the Presidential Palace in Mexico City, President Lee announced the results during a joint press statement. On that day, the two countries adopted the "Korea-Mexico Joint Action Plan 2026-2030," agreeing to broaden their cooperation to include trade and supply chains, AI and digital fields, aerospace and defense industry, as well as culture and education.

President Lee described Mexico as "a top 10 economic powerhouse and a crucial hub for global supply chains, making it a very important strategic partner for Korea," particularly within the uncertain international landscape driven by the reorganization of global supply chains.

In the economic sector, strengthening the institutional framework to expand investment and trade was highlighted as a key achievement. The two countries concluded the negotiation to revise the investment protection agreement, which had been underway for seven years, and agreed to move forward promptly with signing and obtaining respective legislative ratifications to enact the agreement.

The investment protection agreement is designed to safeguard the assets of companies and investors operating in the other country from unfair expropriation or discrimination, while also setting criteria for the remittance of investment funds, compensation, and dispute resolution. For Korean companies operating overseas, it serves as an institutional safeguard to mitigate investment uncertainties stemming from local policy changes.

President Lee also directly addressed the need for a trade agreement. He stated, "Above all, I emphasized that concluding a trade agreement is essential to expand trade and investment between our two countries and to establish a stable business environment." He continued, "Going forward, our respective trade authorities will jointly explore studies in mutual interests and seek ways to build an even more mutually beneficial economic partnership."

Support for corporate finance is also being expanded. The export-import banks of both countries have agreed to establish a new 100 million US dollar credit facility. President Lee explained, "Now, Mexican companies purchasing Korean goods and services, as well as Korean businesses investing in Mexico, will be able to benefit from financial support."

In the area of supply chains, the two countries agreed to launch a direct dialogue channel between relevant ministries to discuss crude oil and other key resources. President Lee stated, "Since our phone call in May, President Sheinbaum has contributed greatly to ensuring additional crude oil supply for our companies," adding, "We have agreed to continue our cooperation to secure stable crude oil imports."

Measures to ease the management burden for Korean companies operating in Mexico were also discussed. The two leaders shared the view that there is a need to quickly conclude a social security agreement to relieve the burden on companies and workers who are subject to dual pension contributions when stationed overseas.

For future industries, AI & digital, aerospace, and defense were identified as new pillars of cooperation. President Lee explained, "This is a plan to align the strategic industrial sectors our government is prioritizing with Mexico’s industrial growth strategy, the so-called ‘Plan Mexico’, which aims for the development of new industries."

President Lee Jae-myung and Mexican President Claudia Sheinbaum are holding a joint press conference at the Presidential Palace in Mexico City on the 24th (local time). 2026.9.25 Yonhap News Photo by Yonhap News Photographer

The two countries agreed to organize a public-private delegation, including participation from the Korean government and companies, to visit Mexico this November. Based on the "Korea-Mexico AI Cooperation Declaration" adopted on that day, both sides will jointly review the progress of the APEC AI Initiative adopted in Gyeongju last year when Mexico chairs the Asia-Pacific Economic Cooperation (APEC) in 2028.

In the aerospace sector, the two sides decided to identify and promote concrete projects using the "Aerospace Industry Cooperation MOU" and the upcoming "Korea-Mexico Space Day," which is scheduled to be held in Mexico this November, as key opportunities.

Defense cooperation will involve not only local production but also joint entry into third-country markets. President Lee stated, "We hope that Korea’s advanced defense technology will contribute to enhancing Mexico’s defense industry capabilities through local production, and that both countries can jointly enter third-country markets. We look forward to President Sheinbaum’s continued interest and support in this area." Based on the Defense Cooperation MOU, the two sides also agreed to expand cooperation in sharing experiences, education and training, and research and development in the defense field.

In the fields of culture and education, both sides will promote the construction of K-Culture facilities and the establishment of new intergovernmental scholarship programs. President Lee noted, "Mexican people's enthusiasm for Korean culture extends beyond K-Pop to K-Beauty and K-Food," adding, "We will continue discussing the construction of relevant facilities in Mexico so that the Mexican public can have even more access to and experience K-Culture."

For public security, both sides will lay the institutional foundation for cooperation against transnational crimes such as online fraud, human trafficking, and drug-related crimes. In agriculture, a cooperative project will be launched starting next year to leverage Korean agricultural technology to enhance the productivity of small-scale Mexican farmers. In anti-corruption initiatives, a working group will be established, and workshops for policy and system exchanges are scheduled.

President Lee Jae-myung and President Claudia Sheinbaum of Mexico are listening to the national anthem at the official welcoming ceremony for the state visit held at the National Palace in Mexico City on the 24th (local time). 2026.9.25 Yonhap News Agency

The two countries will strengthen cooperation on multilateral platforms such as the United Nations, the Asia-Pacific Economic Cooperation (APEC), and MIKTA, and will continue to collaborate as Korea serves as the G20 chair in 2028 and Mexico aspires to become the G20 chair in 2029. President Sheinbaum also expressed support and willingness to cooperate regarding the Korean government's policy for peace and coexistence on the Korean Peninsula.

Concluding the joint press announcement, President Lee introduced the Spanish proverb "La unión hace la fuerza" and remarked, "Together, we can achieve anything," expressing his hope that the two nations will open a new chapter in their strategic partnership.

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