South Korean President Lee Jae-myung and Chilean President José Antonio Kast announced plans to revise their free-trade agreement during a summit Friday [1, 2].
The meeting marks a strategic effort to modernize economic ties and secure critical mineral supplies as both nations seek to diversify their global trade partnerships.
President Lee met with President Kast at the Presidential Palace in Santiago, Chile [2]. This visit is the first by a South Korean president to Chile in 11 years [1]. During the bilateral summit and subsequent joint press conference, the leaders focused on updating the framework of the South Korea-Chile FTA, which was originally signed in 2004 [2].
The revision comes as both nations look to capitalize on the growth experienced since the original pact. Bilateral trade volume has seen a four-fold increase over the last 20 years [1]. Beyond trade tariffs and regulations, the two leaders discussed deepening cooperation regarding the supply and procurement of minerals [2].
"I am pleased that a South Korean president is visiting Chile for the first time in 11 years," Lee said [2]. He also expressed gratitude to President Kast and the Chilean people for the warm welcome extended to his delegation [2].
The discussions in Santiago emphasize a shared goal of economic resilience. By updating the two-decade-old agreement, South Korea aims to stabilize its access to raw materials essential for high-tech industries, a move that aligns with broader efforts to reduce reliance on single-source suppliers for critical minerals [1, 2].
“Bilateral trade volume has seen a four-fold increase over the last 20 years”
The modernization of the 2004 FTA and the focus on mineral cooperation signal South Korea's strategic pivot toward securing stable resource chains in the Americas. By strengthening ties with Chile, a major global producer of lithium and copper, South Korea is insulating its tech and battery industries from volatility in other regions, effectively upgrading a legacy trade relationship into a critical security partnership.
