South Korean President Lee Jae-myung and Brazilian President Luiz Inácio Lula da Silva agreed on Aug. 27 to expand bilateral cooperation into critical minerals, defense, aerospace and other advanced industries, as the two countries seek to strengthen supply chains and advance trade amid growing global economic uncertainty.
Meeting at Brazil’s presidential residence, the two leaders said they would broaden cooperation beyond traditional trade and investment, marking what both governments described as the first year of an upgraded strategic partnership.
The leaders agreed to strengthen strategic cooperation in resources and energy while expanding collaboration across the entire critical-minerals supply chain. The initiative is expected to deepen ties between companies in both countries as manufacturers look to diversify supplies of strategic materials.
In defense and advanced manufacturing, the two sides agreed to build on cooperation involving Brazil’s C-390 military transport aircraft, which incorporates components produced by South Korean small and medium-size suppliers. They said similar partnerships would be pursued in aerospace, aviation and next-generation mobility technologies.
Mr. Lee and Mr. Lula also agreed to accelerate negotiations on a trade agreement between South Korea and Mercosur, the South American trade bloc led by Brazil and Argentina. The leaders said the agreement has become increasingly important as uncertainty surrounding global trade continues to rise.
In an interview with Brazilian newspaper O Globo published on Aug. 27, Mr. Lee said a South Korea-Mercosur trade agreement would represent more than expanded economic cooperation, calling it “an important milestone” demonstrating a shared commitment to preserving a free and open global trading system.
He said South Korea would work with Brazil and other international partners to address global challenges through a foreign policy based on stronger national capabilities, alliances and international cooperation.
The two governments also signed seven memorandums of understanding covering space, sports, education, energy, industrial technology, film and cybersecurity.
Under the space agreement, South Korean companies would benefit from streamlined approval procedures to use Brazilian launch facilities. Another agreement promotes cooperation in seven strategic industries, including artificial intelligence, semiconductors, automobiles, shipbuilding and batteries, while expanding collaboration on industrial supply chains.
Brazil, which holds the world’s second-largest rare-earth reserves, is expected to become a more important supplier of materials used in semiconductor manufacturing, further strengthening supply-chain security for South Korea’s chip industry.
The meeting was the third summit between Mr. Lee and Mr. Lula. The two first met at the Group of Seven summit in Canada shortly after Mr. Lee took office in June last year and met again during Mr. Lula’s state visit to South Korea in February. Mr. Lee’s trip marks the first state visit to Brazil by a South Korean president since former President Park Geun-hye visited the country in 2015.
