South Korean President Lee Jae-myung and Argentine President Javier Milei agreed to start regular imports of Argentine crude oil starting next year [1, 2].
The agreement marks a strategic shift for Seoul as it seeks to diversify its energy supply chain by expanding its oil sources into South America [1, 2]. This move is intended to strengthen economic security, and deepen trade and investment ties between the two nations [1, 2].
The two leaders met for 120 minutes [1] at the Argentine presidential palace in Buenos Aires on July 31 [1, 2]. During the summit, they reached a deal to finalize a double-taxation avoidance agreement to remove financial barriers for businesses operating in both countries [1, 2].
Before regular shipments begin in 2027, the two nations will conduct a trial import of Argentine crude oil this year [1]. That trial phase will involve 880,000 barrels [1].
The Blue House indicated that the partnership is a critical step in securing a more stable energy portfolio. A national security adviser for the Blue House said the meeting provided an opportunity to expand crude oil supply lines to South America [1].
The diplomatic visit focused on long-term economic cooperation. By eliminating double-taxation barriers, both governments aim to encourage more direct investment, and streamline the flow of capital between the East Asian and South American economies [1, 2].
“South Korea and Argentina agreed to start regular imports of Argentine crude oil starting next year.”
This agreement reflects South Korea's ongoing effort to reduce its dependence on traditional energy hubs in the Middle East. By securing a reliable crude oil source in Argentina and removing tax hurdles through a double-taxation treaty, Seoul is hedging against geopolitical volatility in other oil-producing regions while Argentina secures a steady Asian buyer for its energy exports.
