President Lee Discusses Revision of Korea-Chile FTA, Cooperation on Key Minerals Such as Copper and Lithium

[Financial News, Santiago, Chile = Choi Jong-geun]President Lee Jae-myung has arrived in Santiago, Chile, for an official visit after completing his state visit to Brazil. It is the first visit by a South Korean president in 11 years. Lee is scheduled to meet with Chilean President José Antonio Kast, whose new administration took office this year, on the 30th (local time). Lee has signaled plans to push for modernization of the Korea-Chile Free Trade Agreement, which marks its 22nd year this year. The summit is expected to focus on the FTA and cooperation on key minerals.
On the day, Lee will lay a wreath at the statue of national hero O'Higgins, attend an official welcome ceremony at the presidential palace, La Moneda Palace, and then hold a summit, a signing ceremony for memorandums of understanding, a joint press statement, and an official luncheon.
In a written interview with the Spanish-language news agency EFE, released before his visit to Chile, Lee said, "Today’s economy is being reshaped around digital trade, artificial intelligence (AI), clean technology, resilient supply chains, and the transition to carbon neutrality." He added, "The Korea-Chile FTA must evolve to reflect this new reality."
This is understood to mean that the FTA should be revised in response to changing conditions. Earlier, Director of the Office of National Security Wi Sung-lac said, "We will discuss modernization of the FTA with Chile, our first FTA partner," adding, "Through this, we expect to dramatically expand trade with these countries and support our companies in broadening their presence in the South American market." The Korea-Chile FTA was South Korea's first free trade agreement. It took effect in 2004 and is marking its 22nd year this year, but it has never been revised. The two countries have been continuing negotiations on revising the FTA since 2018 and held nine rounds of talks through 2024, but the process is currently suspended.
Lee said, "The two countries want to restart the FTA Joint Committee, advance discussions on modernizing the agreement, and strengthen cooperation in resilient supply chains to take the economic partnership to the next level."
He also said that the two countries will sign a memorandum of understanding on a mineral resources partnership during this visit. He added, "The goal is to work together to stabilize global supply chains for key minerals," noting that Chile has the world's largest reserves of lithium and copper, while South Korea is a country with stable demand and an advanced industrial base.
Chile ranks first in the world in copper reserves and second in lithium reserves, making it a major global producer of both copper and lithium. Copper is a key material for power infrastructure, while lithium is considered essential for batteries.

Cheong Wa Dae senior spokesperson Kang Yu-jung said, "Korea and Chile are expected to strengthen the foundation for cooperation across resources and energy supply chains, including key minerals, and expand trade and investment." She added, "As a global producer of copper and lithium, Chile is a strong partner supporting our leadership in advanced industries."
She also explained, "We will future-proof and strengthen practical cooperation in areas that people and businesses in both countries can directly feel, such as security, defense, infrastructure, maritime affairs, and culture. High-level exchanges and intergovernmental consultative bodies for this purpose will also be fully reactivated."
Meanwhile, at a meeting with overseas Koreans on the 29th, ahead of the summit, Lee said, "Chile was the first country in Latin America to recognize the Republic of Korea, and it was also South Korea's first FTA partner." He added, "Chile may be one of the farthest countries from Korea on the map, but the heart of our deep friendship has always remained close."
Lee added, "At a time when the world knew little about South Korea, Chile was the first to recognize our potential and extend a hand." He continued, "When South Korea began opening its economic doors to the world, Chile became a valuable partner for us."
[email protected] Choi Jong-geun Reporter