President Lee Jae-myung's visit to South America highlighted the direction South Korean diplomacy should take. The trip focused on securing supply chains for key minerals such as rare earth elements, lithium, and copper, while also expanding cooperation in defense, aerospace, and advanced manufacturing as part of economic security diplomacy. This strategic approach, centered on national interests, is noteworthy as the global economy undergoes a transformation driven by technological dominance and supply chain competition.
Today, a nation's competitiveness hinges on its ability to secure key minerals reliably. Industries such as artificial intelligence (AI), semiconductors, batteries, electric vehicles, robotics, and defense cannot grow without strategic minerals like lithium, rare earth elements, and copper. Resource acquisition has evolved from a mere resource policy to an industrial and security policy.
In Brazil, agreements were reached to collaborate on the supply chain for key minerals, including rare earth elements, establishing a cooperative framework that spans from mineral extraction to refining and product manufacturing. Discussions also included joint development of next-generation commercial aircraft and cooperation in the space industry. Korea Aerospace Industries (KAI) signed a strategic cooperation agreement with Brazilian aircraft manufacturer Embraer, while POSCO International entered into a supply chain agreement with a Brazilian rare earth development company. The fact that high-level diplomacy translated into tangible business cooperation is a significant achievement of this visit.
In Chile, the scope of cooperation was further expanded. As one of the world's largest producers of lithium and copper, Chile is pursuing a mineral resource partnership with South Korea, proposing a cooperation model that connects the supply chain of key minerals to advanced manufacturing and defense. The decision to expand joint ventures between LS and Chile's state-owned copper company Codelco, along with strengthening defense cooperation, signifies a commitment to building a high-value industrial ecosystem beyond mere resource acquisition.
The shift in trade strategy is also noteworthy. The Korea-Chile Free Trade Agreement, signed in 2004, was South Korea's first free trade agreement, primarily focused on expanding trade in agricultural and mineral products. However, the global economy is now being reshaped by AI, digital technology, clean technology, and supply chain competition. The modernization of the FTA and the resumption of trade negotiations with the Mercosur bloc are attempts to establish a new trade order that aligns with the changing industrial landscape. As cooperation with South America's largest economic bloc intensifies, new opportunities may arise not only in the automotive and steel sectors but also in defense and aerospace industries.
This visit also demonstrated the collaborative nature of economic diplomacy, with key business leaders such as Chung Eui-sun, chairman of Hyundai Motor Group; Jeong In-hwa, chairman of POSCO Group; Cho Won-tae, chairman of Korean Air; and Koo Ja-eun, chairman of LS, accompanying the president to discuss cooperation with local companies. The government's role in opening diplomatic doors while businesses explore markets should continue to be actively expanded.
The success of diplomacy cannot be measured solely by joint statements. It is only when investments and exports increase, supply chains stabilize, and companies expand overseas that citizens can truly feel the benefits. This South American visit illustrates where South Korea should seek new growth engines. Economic diplomacy that connects key minerals with defense, aerospace, and AI industries is expected to yield practical results that enhance national competitiveness, rather than being a one-time event.
Today, a nation's competitiveness hinges on its ability to secure key minerals reliably. Industries such as artificial intelligence (AI), semiconductors, batteries, electric vehicles, robotics, and defense cannot grow without strategic minerals like lithium, rare earth elements, and copper. Resource acquisition has evolved from a mere resource policy to an industrial and security policy.
In Brazil, agreements were reached to collaborate on the supply chain for key minerals, including rare earth elements, establishing a cooperative framework that spans from mineral extraction to refining and product manufacturing. Discussions also included joint development of next-generation commercial aircraft and cooperation in the space industry. Korea Aerospace Industries (KAI) signed a strategic cooperation agreement with Brazilian aircraft manufacturer Embraer, while POSCO International entered into a supply chain agreement with a Brazilian rare earth development company. The fact that high-level diplomacy translated into tangible business cooperation is a significant achievement of this visit.
In Chile, the scope of cooperation was further expanded. As one of the world's largest producers of lithium and copper, Chile is pursuing a mineral resource partnership with South Korea, proposing a cooperation model that connects the supply chain of key minerals to advanced manufacturing and defense. The decision to expand joint ventures between LS and Chile's state-owned copper company Codelco, along with strengthening defense cooperation, signifies a commitment to building a high-value industrial ecosystem beyond mere resource acquisition.
The shift in trade strategy is also noteworthy. The Korea-Chile Free Trade Agreement, signed in 2004, was South Korea's first free trade agreement, primarily focused on expanding trade in agricultural and mineral products. However, the global economy is now being reshaped by AI, digital technology, clean technology, and supply chain competition. The modernization of the FTA and the resumption of trade negotiations with the Mercosur bloc are attempts to establish a new trade order that aligns with the changing industrial landscape. As cooperation with South America's largest economic bloc intensifies, new opportunities may arise not only in the automotive and steel sectors but also in defense and aerospace industries.
This visit also demonstrated the collaborative nature of economic diplomacy, with key business leaders such as Chung Eui-sun, chairman of Hyundai Motor Group; Jeong In-hwa, chairman of POSCO Group; Cho Won-tae, chairman of Korean Air; and Koo Ja-eun, chairman of LS, accompanying the president to discuss cooperation with local companies. The government's role in opening diplomatic doors while businesses explore markets should continue to be actively expanded.
The success of diplomacy cannot be measured solely by joint statements. It is only when investments and exports increase, supply chains stabilize, and companies expand overseas that citizens can truly feel the benefits. This South American visit illustrates where South Korea should seek new growth engines. Economic diplomacy that connects key minerals with defense, aerospace, and AI industries is expected to yield practical results that enhance national competitiveness, rather than being a one-time event.
* This article has been translated by AI.
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