Lee pitches "resuming economic agreement talks with Mexico ... FA-50 for air force modernization"

[Financial News, Mexico City, Mexico—Choi Jong-geun]President Lee Jae Myung, making the first state visit to Mexico by a South Korean leader in 16 years, signaled his intention to restart the long-stalled negotiations for a Korea-Mexico economic agreement. He also proposed South Korea's FA-50 as a potential partner for Mexico's air force fighter modernization program, outlining the possibility of technology transfers and local production. The move is seen as an effort to take strategic economic cooperation between the two countries to the next level, with trade and defense as its two main pillars.
In an interview with Mexico's daily El Universal released on the 23rd (local time), President Lee said, "It is important to resume negotiations for an economic agreement between South Korea and Mexico, advance the conclusion of a social security agreement, and strengthen institutional mechanisms to protect investment."
President Lee emphasized, "Now is the time to establish an institutional framework for robust economic cooperation that matches the relationship we have built," adding, "This will create a more stable and secure environment for businesses and people in both countries."
Given that the two countries have pursued free trade agreement (FTA) negotiations for many years, some interpreted the remarks as a call to restart the effectively stalled Korea-Mexico FTA talks. Trade negotiations between the two countries began in 2006 with talks on a Strategic Economic Complementarity Agreement (SECA), a precursor to an FTA, but have made no progress since then.
However, Seong Ki-hong, senior presidential secretary for public relations and communication, explained, "The written interview article contains no reference to resuming the FTA. The president mentioned the need for an economic agreement between South Korea and Mexico."
He added, "In this regard, the two sides are continuing consultations on comprehensive economic cooperation, including trade, investment and industrial supply chain cooperation. However, the discussions concern an economic agreement for comprehensive cooperation, not an FTA centered on market opening."
President Lee described Mexico as "South Korea's largest trading and investment partner in Latin America and a highly important strategic partner with which we share a long history of friendship and trust." He continued, "About 500 South Korean companies have entered the Mexican market, creating jobs through investment and contributing to Mexico's industrial development," adding, "This shows how deeply the economies of the two countries are connected today."
In the defense sector, he specifically mentioned the FA-50. President Lee said, "If Mexico's air force fighter modernization project moves forward, South Korea's FA-50, with its performance and price competitiveness, could lay the foundation for mutually beneficial cooperation between the two countries."
He also left open the possibility of cooperation extending beyond simple exports of finished products. President Lee emphasized, "Such projects could eventually lead to technology transfers and local production, which could also help strengthen Mexico's industrial base and create jobs."
He also expressed a desire to expand cooperation in advanced industries. President Lee identified semiconductors, aerospace and electric vehicles—industries Mexico is developing through Plan México—as promising areas for bilateral cooperation. In particular, he said, "Mexico has a world-class automotive industry and a strong supply chain, while South Korea has high competitiveness in batteries and electric vehicle components," adding, "Combining our strengths can create new synergies."
Regarding supply chain cooperation, he noted that Mexico helped South Korea diversify its sources of crude oil imports during a period of instability in the Middle East. President Lee said, "Thanks to Mexico's valuable cooperation, South Korea was able to expand its crude oil imports," adding, "As the saying goes, 'A true friend is known in times of adversity,' and we once again confirmed the trust and friendship between our two countries."
President Lee also proposed joint artificial intelligence (AI) pilot projects and technological cooperation, expanded space cooperation in satellites and launch vehicles, and greater coordination between law enforcement authorities to combat transnational crimes such as online fraud, human trafficking and drug trafficking. Taking the summit as an opportunity, he also said the two countries would establish joint production and talent-development programs in content and the arts, while pursuing the establishment of a K-Culture Center in Mexico.
Meanwhile, on the 24th, President Lee will lay a wreath at the Monument to the Boy Heroes in Chapultepec Park before attending an official welcoming ceremony at the National Palace, the presidential palace.
President Lee will then hold a one-on-one meeting with President Claudia Sheinbaum, an expanded summit meeting, an MOU exchange ceremony, a luncheon and a joint press statement. In the evening, he will host a dinner meeting with South Korean residents in Mexico.
[email protected] Choi Jong-geun Reporter