President Lee and Lula set December goal to resume Mercosur talks, establish working group

[Financial News, São Paulo, Brazil = Choi Jong-geun]President Lee Jae-myung, who is on a state visit to Brazil, held a summit with Brazilian President Luiz Inácio Lula da Silva at the Alvorada Palace on the 27th local time. At the meeting, the two leaders discussed issues related to the Korea-MERCOSUR trade agreement and agreed to establish a bilateral working group with the goal of resuming negotiations in December this year.
They also discussed ways to deepen cooperation in trade and investment, resources and energy, defense, space and aviation, health and cosmetics, culture and people-to-people exchanges, as well as at multilateral forums and on the Korean Peninsula. As a result, they adopted the Korea-Brazil joint summit statement. After the summit, President Lee will meet business leaders in São Paulo and continue his economic sales diplomacy. This is the first state visit to Brazil by a South Korean president in 11 years, made at President Lula's invitation. It was the fifth meeting between President Lee and President Lula since Lee took office. This year, Lula made a state visit to Korea in February, and the two leaders met again in June on the sidelines of the Group of Seven (G7) summit in France. President Lee will then move to São Paulo and attend a luncheon with the Korean community and the Korea-Brazil business roundtable on the 28th. The roundtable will be attended by Hyundai Motor Group Chairman Chung Eui-sun, POSCO Group Chairman Chang In-hwa, Korean Air Chairman Walter Cho, and Korea Aerospace Industries President Kim Jong-chul.
At the summit, President Lee and President Lula agreed that, amid growing uncertainty in the global trade environment, negotiations on a trade agreement between Korea and MERCOSUR are a key foundation for a new leap in bilateral economic cooperation. Kang Yoo-jung, senior presidential spokesperson, said in a written briefing that the two sides agreed to establish a Korea-Brazil bilateral working group to analyze trade opportunities and sensitivities, with the aim of announcing the resumption of negotiations at the 69th MERCOSUR summit in December.
They also praised the launch of the Korea-Brazil Economic and Trade Committee, a key driver of bilateral cooperation in trade, investment and industry. They said the signing of the industrial technology cooperation memorandum of understanding would serve as a basis not only for smoother trade and investment, but also for expanding cooperation in future industries such as defense, the digital economy and critical minerals.
President Lee emphasized that Brazil is the top investment destination for Korean companies, a gateway to Latin America, and a key economic partner. He asked President Lula for special attention and support so that Korean companies can invest and expand their businesses in a stable environment. Lula responded by highly valuing the contribution of Korean companies to Brazil's economic and industrial development and said he would actively support expanded investment and stable business operations.
The two leaders also agreed to expand mutually beneficial cooperation across the full supply chain for critical minerals, including rare earths, by linking Brazil's abundant critical mineral resources with Korea's advanced industrial and technological capabilities. They said they would actively support the creation of government-to-government cooperation channels and business-to-business partnerships for that purpose.
They also agreed to strengthen cooperation in future air mobility based on Korea's acquisition of Brazil's C-390 transport aircraft, and to broaden cooperation across the space sector.

The two leaders will also expand cultural and people-to-people exchanges to bring the peoples of the two countries closer together. Lula said interest in Korean culture and products such as K-pop, K-food and K-beauty is rising in Brazil. Lee asked for Brazil's attention and support so that Korean consumer goods, including food, cosmetics and health products, can enter the Brazilian market more smoothly through improved customs clearance and licensing procedures.
In addition, the two leaders agreed to deepen cooperation at multilateral forums such as the United Nations and the G20, based on shared views on major global issues including multilateralism and climate change.
At the subsequent signing ceremony for memorandums of understanding, the two sides signed seven MOUs. First, Korea and Brazil signed an MOU on space cooperation. The agreement covers harmonizing and simplifying launch regulations, including launch permit procedures, when Korean companies use Brazilian launch sites; cooperation on lunar exploration and related scientific, technological and commercial activities; space industry and economic development; and sharing satellite data, including images and video. It will help improve the efficiency of launches by Korean private launch vehicles using Brazilian launch sites, while government-led cooperation in space will support Korean companies entering Brazil's space market.
The two countries also signed MOUs on energy and industrial technology cooperation. The energy cooperation MOU will promote cooperation in renewable energy, power grids, smart grids and energy efficiency to accelerate the energy transition. The industrial technology cooperation MOU will foster technological cooperation in seven areas: bioeconomy, sustainable fuels, industrial decarbonization, low-carbon and sustainable materials, and advanced strategic industries such as AI, semiconductors, automobiles, shipbuilding and batteries.
They also signed an MOU on sports cooperation, which includes exchanges of athletes, experts and coaches, as well as policy sharing. Another agreement on education cooperation includes sharing education policies in the AI and digital sectors and promoting Korean language education in regular Brazilian schools.
In addition, the two countries renewed their film cooperation MOU after the summit. It includes expanding events for co-productions, increasing collaboration on film screenings in each other's countries, and strengthening practical cooperation through exchanges of information and personnel related to the film industry and policy.
They also agreed under a cybersecurity cooperation MOU to create a favorable environment for Korean security companies to enter the Brazilian and broader Latin American markets.
After the joint press statement, a state luncheon hosted by President Lula and his wife was held. Kang said the two presidential couples spoke throughout the meal in a warm and friendly atmosphere, further deepening their ties. Lula said at the end of the luncheon that education is the most important investment for the future, and noted that Korea's development and growth have been based on nurturing talent through education. He also said Brazil hopes to share its own experience of developing talent and achieving economic growth through education, and to expand cooperation with Korea.
The state luncheon that day was prepared by Mara Salles, a leading Brazilian chef from São Paulo. The front cover of the card holding the menu on the luncheon table featured a work by designer Lee Jin-hee, ambassador for Pearl Silk, titled "a hanbok media facade of the Christ the Redeemer statue," using the Christ the Redeemer statue in Rio de Janeiro State.
Kang stressed that "based on the achievements of this summit, the two leaders agreed to keep high-level exchanges and consultation channels at all levels in operation, and to deepen the Korea-Brazil strategic partnership by faithfully implementing the joint statement and sector-specific cooperation outcomes."
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