South Korea and Argentina Hold Summit on Argentine Crude Imports Next Year and Critical Minerals Cooperation

[Financial News, Buenos Aires, Argentina = Reporter Choi Jong-geun]President Lee Jae Myung attended an official welcome ceremony at the presidential palace in Buenos Aires on the 31st local time before holding a summit with Argentine President Javier Milei. It was the first official visit by a South Korean president to Argentina in 22 years.
After the photo session, Lee and Milei smiled and shook hands. They then moved to the summit venue and held talks for 58 minutes, from 11:40 a.m. to 12:38 p.m.
At the summit, Lee agreed to significantly expand cooperation between the two countries on critical mineral supply chains. The two sides also broadened the scope of economic cooperation by moving to fully launch imports of Argentine crude oil, finalizing negotiations on a double taxation avoidance agreement, and agreeing to resume South Korea-MERCOSUR trade agreement talks within the year.
Wi Sung-lac, chief of the presidential office's National Security Office, said at a press briefing in Buenos Aires that the summit had established a framework for cooperation on critical mineral supply chains needed for future industries. "On the occasion of this visit, the two countries signed a 'Memorandum of Understanding on Critical Minerals Cooperation' to share information on policies and investment systems related to critical minerals, and agreed to promote investment and joint projects by companies from both countries across the value chain, including lithium exploration and mining," he said. In addition to lithium, the government plans to seek expanded investment opportunities for Korean companies in new critical mineral sectors such as copper.
Wi also said, "We have created a practical opening to expand crude oil supply lines to South America." He added, "Korean companies made a pilot import of Argentine crude oil this year, and based on that, imports are expected to begin next year." The amount of Argentine crude oil brought into Korea through this year's pilot import is 880,000 barrels, while the volume to be imported next year has not yet been decided. Still, the move is expected to diversify Korea's crude oil supply lines away from the Middle East, reduce geopolitical uncertainty, and improve the country's ability to respond to energy supply and demand.
South Korea and Argentina also plan to expand energy cooperation beyond crude oil to include natural gas and nuclear power, while jointly identifying specific projects for collaboration.
They also strengthened the institutional foundation to support Korean companies' investment and entry into the local market. Wi said, "The two countries have finalized the double taxation avoidance agreement," adding, "We expect this to ease the double taxation burden on Korean companies operating in Argentina and improve predictability in the investment environment." Asked about the background to the agreement, Wi explained that "among several pending issues between Argentina and us, a few were resolved this time, and one of them was the double taxation avoidance agreement," adding that it reflected both sides' willingness to advance bilateral ties to a new level in broad terms on the occasion of the summit.
  Lee and Milei also agreed to push for an early resumption of negotiations on the South Korea-MERCOSUR trade agreement, with the aim of expanding access for Korean companies to the South American market.
Following Brazil, which leads MERCOSUR, Argentina also agreed on the occasion of this summit to resume South Korea-MERCOSUR trade agreement talks within the year. If the agreement is eventually concluded, it is expected to significantly improve export conditions for Korean products in a market of 280 million people.
Earlier, Lee reached an agreement with Brazilian President Luiz Inacio Lula da Silva to seek a resumption of negotiations at the next MERCOSUR summit in December. Support from other member states is needed to restart the talks, and South Korea has now secured the backing of Argentina, a key MERCOSUR member. Negotiations on the South Korea-MERCOSUR trade agreement began in 2018 but have been suspended since 2021.
Wi said, "Along with Brazil, we have used this bilateral visit with Argentina, a G20 member and one of the two major powers in MERCOSUR, to fully restart summit diplomacy and advance discussions to build a foundation for cooperation." He added, "As a result, President Lee has now held bilateral talks with all G20 members except Russia since taking office, and has laid the groundwork for support for South Korea's role as G20 chair in 2028."
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