Korea and Mexico Conclude Revised Investment Protection Agreement After Seven Years

Stronger Investment Protections Including Fund Repatriation and Loss Compensation
Guarantees for Capital Transfers Even During Financial Crises
Joint Declaration on AI Cooperation Announced

The Ministry of Foreign Affairs announced on the 25th that negotiations to revise the "Agreement on the Promotion and Reciprocal Protection of Investments" between the governments of Korea and Mexico were concluded on the 23rd.

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

The two countries began negotiations in 2019 to update the existing investment protection agreement, which came into effect in 2002, to reflect changes in the global investment environment, and reached an agreement after seven years.

The revised agreement clarifies the host country's legitimate regulatory authority while strengthening investor protections, including safeguards for the repatriation of investment funds and compensation for losses.

Notably, the revision improves dispute resolution procedures by preventing indiscriminate lawsuits by paper companies and guarantees the transfer of investment funds even in the event of a foreign exchange crisis. It also establishes procedures for investors to seek remedies against excessive tax measures.

The Ministry of Foreign Affairs stated, "Mexico is Korea's largest trading and investment partner in Latin America, with many Korean companies operating there," adding, "The conclusion of these revised negotiations will further strengthen the legal foundation for investment protection between the two countries."

Meanwhile, the Ministry of Foreign Affairs also announced a "Joint Declaration on AI Cooperation" with the Mexican Ministry of Foreign Affairs during President Lee Jae-myung's state visit to Mexico.

Through the joint declaration, both countries agreed to expand cooperation in the field of AI and to promote collaborative efforts in line with the "APEC AI Initiative" adopted at the APEC summit in Gyeongju last year.

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