The South Korean government is set to enhance economic cooperation with Brazil, focusing on three key areas: next-generation civil aircraft, critical mineral supply chains, and K-beauty products.
Additionally, discussions will take place regarding measures to ease the entry of Brazilian beef into the South Korean market, following a halt in negotiations over the Korea-Mercosur trade agreement due to disagreements over agricultural market openings in 2021.
During a business roundtable held on July 28 in São Paulo, President Lee Jae-myung stated, "We can achieve significant results in three areas: joint development of next-generation civil aircraft, cooperation in critical mineral supply chains, and the rapidly popular K-beauty sector."
Following the elevation of bilateral relations to a strategic partnership in February, the roundtable aims to solidify cooperation through corporate investments and joint projects. Participants identified manufacturing, infrastructure, advanced industries, and consumer goods and distribution as key areas for collaboration and discussed potential new business opportunities.
President Lee noted that the global industrial and economic landscape is rapidly changing due to intensified competition for technological supremacy and the restructuring of supply chains driven by the AI revolution. He emphasized the importance of securing partners that can leverage each other's strengths amid growing global uncertainties.
"Brazil is a treasure trove of essential minerals and iron ore critical for advanced industries," President Lee said, highlighting the country's strengths in clean energy sources such as hydropower, wind, and solar energy, as well as its capabilities in producing bioethanol and small to medium-sized civil aircraft.
He added, "If South Korea's unique innovative technologies and manufacturing capabilities combine with Brazil's abundant resources, the two countries can become optimal partners in leading stable supply chains and future industries together."
In the aviation sector, plans are underway to connect Brazil's capabilities in developing and producing small to medium-sized civil aircraft with South Korea's aircraft parts manufacturing technology. The government intends to establish a cooperative framework involving relevant ministries and businesses to expand the role of domestic companies beyond traditional parts supply.
During the roundtable, South Korean and Brazilian companies and institutions signed a total of seven memoranda of understanding (MOUs) in areas including aerospace, AI-based digital healthcare, critical minerals, research and development (R&D), and investment and trade. Korea Aerospace Industries (KAI) signed an MOU for cooperation in the civil aircraft and aerospace sectors with Brazil's Embraer, the world's third-largest aircraft manufacturer after Boeing and Airbus.
President Lee pointed out that the current level of trade between the two countries is insufficient compared to their economic sizes and the complementarity of their industries. Brazil is South Korea's largest trading partner in South America and a key gateway to the Latin American market, yet the potential for cooperation has not translated into adequate trade and investment.
The government plans to address institutional issues such as tariffs and regulations that hinder corporate collaboration and will implement a support system to directly hear the concerns of companies already operating or looking to enter the market.
President Lee concluded, "If business leaders from both countries join forces, South Korea and Brazil can become leading aircraft manufacturing nations in the global aviation market, important partners in supply chain cooperation, and leaders in the global beauty market."
* This article has been translated by AI.
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