President Lee’s State Visit to Mexico Breaks the Deadlock in Trade and Industrial Cooperation

President Lee Wraps Up Summit with President Sheinbaum

Seventeen MOUs Signed, Joint Press Announcement Issued

Seven-Year IPPA Renegotiation Concluded

Trade Agreement Talks Back on Track

$100 Million Finance and Crude Supply Chain Established

Cooperation Expands to AI, Aerospace, and Defense

Leaders Meet Business Figures Including Chey Taewon, Koo Kwangmo, and Koo Jaeun after MOU Signing

President Lee Jae-myung’s state visit to Mexico is expected to serve as a catalyst for jumpstarting Korea-Mexico economic cooperation, which has remained at a standstill for years. The two countries have concluded negotiations on revising the bilateral Investment Promotion and Protection Agreement (IPPA), a process that has spanned seven years, and have also resumed discussions on a trade agreement that had been halted. Additionally, a new financial support program for companies valued at 100 million dollars is being established, along with fresh cooperation channels on crude oil and key resource supply chains. Experts note that these efforts lay the groundwork for expanding bilateral economic ties beyond trade to encompass investment, supply chain cooperation, and high-tech industries.

President Lee Jae-myung is speaking at a joint press conference with Claudia Sheinbaum, President of Mexico, held at the Presidential 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 held a summit meeting with President Claudia Sheinbaum and adopted the “Korea-Mexico Joint Action Plan for 2026–2030.” This marks the first state visit to Mexico by a Korean president in 16 years. Starting at 10:05 a.m., the two leaders held a private meeting for 44 minutes, followed by an extended meeting from 10:50 a.m. that lasted one hour and 15 minutes, totaling nearly two hours of discussions. This visit comes as both nations seek to broaden the scope of bilateral cooperation in areas such as trade and investment, energy, technology, aerospace, and defense industries.

The most significant outcome is the conclusion of renegotiations on the Investment Promotion and Protection Agreement, which had been ongoing for seven years. Both sides have agreed to expedite the process for signing and ratifying the revised agreement. The IPPA provides a framework to protect the assets of companies and investors from each country operating in the other country from unfair expropriation or discriminatory measures, and sets standards for remittance of investment returns, compensation, and dispute resolution. For overseas investors, the agreement serves as a “safety net” to reduce uncertainties arising from changes in local policies.

Efforts have also been renewed to restart talks on a bilateral trade agreement. Currently, Korea and Mexico do not have a Free Trade Agreement (FTA), which means mutual trade is governed by World Trade Organization (WTO) rules. The Mexican side has also emphasized that the two economies both compete and complement each other structurally.

During the joint press announcement, President Lee stated, “I emphasized the importance of concluding a trade agreement to expand bilateral trade and investment and create a stable business environment.” However, a formal agreement to immediately reopen negotiations has yet to be made. The trade authorities of both countries have instead decided to first conduct a “joint study on mutual interests” to explore opportunities for mutually beneficial cooperation.

The Mexican side also expressed anticipation for increased Korean investment. Before the summit, President Sheinbaum remarked, “Korean companies are interested in investing in Mexico,” and indicated her intention to directly address their inquiries and future investment plans. At the joint press announcement, she reiterated both countries’ commitment to a vision of “shared prosperity,” expressing determination to generate mutually beneficial results by combining Korea’s industrial and technological prowess with Mexico’s own competitive advantages.

This aligns with the Sheinbaum administration’s industrial development strategy called “Plan Mexico.” The Mexican government is pushing to expand domestic production and investment and to advance technology as key pillars of Plan Mexico. In fact, President Sheinbaum highlighted recent cases such as Kia Motors Korea’s investment of 649 million dollars and electric vehicle production in Mexico as examples of local production expansion driven by Korean companies.

Breakthroughs in Corporate Finance and Supply Chains…Expanding Cooperation in AI, Aerospace, Defense and More

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 Photo by Yonhap News

Progress has also been made in cooperation on corporate finance and supply chains. The Export-Import Bank of Korea and Mexico’s Banco Nacional de Comercio Exterior (Bancomext) are creating a new credit line worth 100 million dollars. This will assist Mexican companies purchasing Korean goods and services, as well as Korean companies operating in Mexico, to access financing. The two governments will also launch new dialogue channels focused on crude oil and strategic resources.

President Lee commented, “Since our phone conversation in May, President Sheinbaum has provided great support to ensure additional crude oil supplies for Korean companies, and we have agreed to continue our cooperation for stable crude imports.” Both leaders also acknowledged the need for an early conclusion of a social security agreement to reduce the double burden of pension contributions for companies and employees operating in both countries.

The scope of economic cooperation is expected to expand into high-tech industries such as AI and digital technology, aerospace, and defense. The two countries have adopted a “Korea–Mexico AI Cooperation Declaration” and will send a public-private economic delegation—including government representatives and businesses—to Mexico this November to discuss follow-up projects. The Joint Economic, Science, and Technology Committee, which had been suspended since 2015, will also be revived.

In aerospace, Korea Aerospace Industries (KAI) and companies like POSCO International are working with Mexican counterparts to establish local supply chains and transfer operational and maintenance technology for products such as the FA-50 aircraft, drones, and satellites. There are also discussions about the possibility of locally producing aerospace products developed by KAI in partnership with Mexican companies.

Regarding defense cooperation, President Lee expressed high expectations for President Sheinbaum’s support and interest, stating, “I hope Korea’s cutting-edge defense technology and its local production in Mexico will strengthen Mexico’s defense industrial capacity and enable both countries to jointly enter third-country markets.”

While this summit did not resolve all longstanding trade issues at once, including the trade agreement, which has only taken the first step with the joint study, and the IPPA, which still awaits signing and ratification, both sides have started to operationalize a suite of cooperative mechanisms. These mechanisms—including investment protection, trade agreements, finance, supply chains, and high-tech industries—are expected to provide the structure necessary for reinvigorating Korea-Mexico economic collaboration.

Meanwhile, after the MOU exchange, the two leaders met with major business representatives from the Korean economic delegation to discuss ways to expand investment and industrial cooperation in Mexico. The delegation included key business leaders such as Chey Tae-won, Chairman of SK Group; Koo Kwang-mo, Chairman of LG Group; Koo Ja-eun, Chairman of LS Group; Roh Tae-moon, President of Samsung Electronics; Song Ho-sung, President of Kia; and Lee Kyain, CEO (Vice Chairman) of POSCO International.

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