Lee Signals Willingness to Resume Korea-Mexico FTA Talks... Pitches FA-50 for Mexico’s Air Force Modernization

【Financial News, Mexico City, Mexico—Choi Jong-geun, reporter】President Lee Jae Myung, who is making the first state visit to Mexico by a South Korean leader in 16 years, has signaled his willingness to revive the long-stalled negotiations for a Korea-Mexico Free Trade Agreement (FTA). He proposed South Korea’s FA-50 as a cooperation model for Mexico’s air force fighter modernization project and outlined the possibility of technology transfers and local production in the future. The move is seen as an effort to take strategic economic cooperation between the two countries to a higher level, with trade and defense serving as its two main pillars.
In an interview with Mexico’s daily El Universal published 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 investments."
President Lee emphasized, "It is now time to establish an institutional framework commensurate with the relationship we have built and our robust economic cooperation. Through this, we will be able to create a more stable and secure environment for businesses and citizens in both countries."
Given that the two countries have pursued FTA negotiations for many years, his remarks are interpreted as emphasizing the need to restart the Korea-Mexico FTA talks, which have effectively been stalled.  The countries began negotiations in 2006 for a Strategic Economic Complementation Agreement (SECA), a precursor to an FTA, but the talks have made no progress to date.
President Lee described Mexico as "South Korea’s largest trade and investment partner in Latin America and a very important strategic partner with which we share a long history of friendship and trust." He added, "Approximately 500 Korean companies are operating in Mexico, creating jobs through their investments and contributing to the development of Mexican industry," saying this "shows how deeply the economies of the two countries are connected today."
In the defense sector, President Lee specifically mentioned the FA-50. He stated, "If Mexico’s air force fighter modernization project moves forward, South Korea’s FA-50, based on its performance and price competitiveness, could lay the foundation for cooperation that benefits both countries."
He also left open the possibility of cooperation extending beyond simple exports of finished products. President Lee stressed, "Going forward, such projects could lead to technology transfers and local production, thereby contributing to the strengthening of Mexico’s industrial base and the creation of jobs."
He also expressed a willingness to expand cooperation in advanced industries. President Lee identified semiconductors, aerospace and electric vehicles—industries that the Mexican government is cultivating through Plan Mexico—as promising areas for bilateral cooperation. In particular, he said, "Mexico has a world-class automotive industry and a solid supply chain, while South Korea has strong competitiveness in batteries and electric vehicle components. Combining these strengths can create new synergies."
Regarding supply-chain cooperation, President Lee noted that Mexico had helped South Korea diversify its sources of crude oil imports during a period of instability in the Middle East. He 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 adversity,’ and we once again confirmed the trust and friendship between our two countries."
President Lee also proposed joint pilot projects and technological cooperation in artificial intelligence (AI), space cooperation involving satellites and launch vehicles, and expanded coordination between law enforcement authorities to combat cross-border crimes such as online fraud, human trafficking and drug trafficking. He also announced plans to establish joint production and talent-development systems in the content and arts sectors and to pursue the establishment of a K-Culture Center in Mexico following the summit.
Meanwhile, President Lee will lay a wreath at the Monument to the Niños Héroes in Chapultepec Park on the 24th before attending an official welcoming ceremony at the National Palace.
President Lee will then hold a one-on-one meeting and an expanded summit with President Claudia Sheinbaum, attend an MOU exchange ceremony and a luncheon, and take part in a joint press conference. In the evening, he will host a dinner meeting with South Korean nationals living in Mexico.

[email protected] Choi Jong-geun Reporter