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 Defense Technologies in Mexico and Entry into Third-Country Markets"

President Lee Jae-myung, who is on a state visit to Mexico, and Mexican President Claudia Sheinbaum have concluded negotiations to revise the bilateral investment protection agreement, which had continued for seven years. The two countries also agreed to establish a new credit line worth USD 100 million between their export-import banks and to set up a cooperation channel for crude oil and core resource supply chains. President Lee noted that a trade agreement is "crucial" to further advance bilateral trade and investment, leaving open the possibility of expanding trade negotiations 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), at the Presidential Palace in Mexico City, President Lee announced the outcomes of the summit with President Sheinbaum during a joint press conference. On that day, the two countries adopted the "2026–2030 Korea-Mexico Joint Action Plan" and agreed to broaden their cooperation in areas such as trade, supply chain, AI and digital technologies, aerospace and defense, as well as culture and education.

President Lee assessed, "In an uncertain global landscape marked by a reorganization of global supply chains, Mexico—a top-10 global economic powerhouse and a critical hub within these supply chains—is a very important strategic partner for Korea."

In economic affairs, strengthening the institutional foundation to expand investment and trade was highlighted as the key achievement. The two countries concluded negotiations to revise their bilateral investment protection agreement after seven years and plan to swiftly bring it into effect through the necessary procedures, including signing and ratification by parliament.

The investment protection agreement aims to safeguard the assets of companies and investors operating in each other’s countries, protecting them from unfair expropriation or discrimination, and sets standards for matters such as remittance, compensation, and dispute resolution. For companies operating overseas, this serves as an institutional safety net to reduce investment uncertainties caused by local policy changes.

President Lee also directly addressed the need for a trade agreement. He stated, "Above all, I conveyed that it is crucial to conclude a trade agreement to expand bilateral trade and investment and to create a stable business environment." He added, "Going forward, we will conduct joint studies between the trade authorities of both nations to seek further ways to foster a mutually beneficial economic partnership."

Financial support for companies will also be enhanced. The two countries’ export-import banks agreed to establish a new credit line worth USD 100 million. President Lee explained, "Mexican companies purchasing goods and services from our companies, as well as Korean companies investing in Mexico, will now be able to benefit from financial support."

In the supply chain sector, the two governments will launch a bilateral dialogue channel to discuss crude oil and critical resources. President Lee remarked, "Since our phone call in May, President Sheinbaum has greatly helped in ensuring additional crude oil supplies for our companies," and affirmed ongoing cooperation for stable crude oil imports.

Measures to reduce the operational burden on Korean companies entered into Mexico were also discussed. The two leaders agreed on the need to promptly conclude a social security agreement to relieve companies and dispatched employees from the double burden of pension insurance payments in both countries.

For future industries, AI and digital sectors, aerospace, and defense were presented as new pillars of cooperation. President Lee explained, "This is a plan to link the strategic industries prioritized by our government with the goal of fostering new industries under Mexico's national economic development strategy, 'Plan Mexico.'"

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 will form a public-private delegation, including representatives from the Korean government and companies, to visit Mexico this November. Based on the "Korea-Mexico AI Cooperation Declaration" adopted on this day, the two governments plan to jointly review the implementation of last year’s APEC AI Initiative at the time when Mexico serves as the Asia-Pacific Economic Cooperation (APEC) chair in 2028.

In the aerospace sector, the two sides plan to identify specific projects through the "Aerospace Industry Cooperation MOU" and at the "Korea-Mexico Space Day" to be held in Mexico this November.

Defense industry cooperation is being considered up to local production and joint advancement into third-country markets. President Lee stated, "I look forward to President Sheinbaum's special attention and support so that Korea's advanced defense technology will result in local production in Mexico, strengthening Mexico's defense industry capabilities, and that both countries can jointly advance into third-country markets." Based on the defense cooperation MOU, the two sides also agreed to expand sharing of experiences in the defense sector, as well as cooperation in education, training, and R&D.

In the culture and education sectors, the two countries are promoting the establishment of K-culture facilities and the launch of bilateral scholarship programs. President Lee stated, "Mexicans have a unique affection for Korean culture, not only for K-pop but also for K-beauty and K-food," and added, "We will continue discussions to construct more relevant facilities in Mexico so that local people can experience K-culture more frequently and easily."

In public security, an institutional basis will be established to promote cooperation on transnational crimes such as online fraud, human trafficking, and drug trafficking. In agriculture, the two countries agreed to cooperate on projects starting next year to apply Korean agricultural technologies to improve productivity for small and medium-sized farmers in Mexico. In the anti-corruption field, a working group will be launched and policy and institutional exchange workshops will be held.

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 also agreed to strengthen cooperation in multilateral forums such as the United Nations, APEC, and MIKTA, and to collaborate during Korea's G20 presidency in 2028 and Mexico's G20 presidency in 2029. President Sheinbaum expressed support and cooperation for the Korean government’s policy for peaceful coexistence on the Korean Peninsula.

Concluding the joint press conference, President Lee cited the Spanish proverb "La unión hace la fuerza," meaning "Together, we can accomplish anything," and expressed his hope for the two countries to open a new chapter as strategic partners.

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