appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Park Chan-kyong

If South Korea wants to unlock access to South American trade, it will need to prove it is not a competitor interested only in extracting natural resources but a trustworthy partner committed to revitalising manufacturing industries, according to observers.
On Monday, South Korean President Lee Jae Myung and Brazilian President Luiz Inacio Lula da Silva agreed to revive negotiations on a free-trade agreement between South Korea and Mercosur, the South American trade bloc.
A joint working group will be established to prepare a formal declaration to resume talks at the Mercosur summit in December, according to a joint statement issued after their meeting in Brasília.
Analysts, however, warn that scepticism towards the deal remains strong across the region, particularly within Brazil’s manufacturing sector. To win support in Latin America, Seoul should demonstrate tangible commitments through investment and technology transfer – not just diplomatic rhetoric, they say.
Mercosur is one of the world’s largest trade blocs, comprising Argentina, Brazil, Paraguay, Uruguay and Bolivia, along with several associate members.

South Korea-Mercosur trade talks, which started in 2018, have been stalled since late 2021 amid growing concerns that increased imports of Korean goods could harm the region’s industrial base.
“The two leaders could have declared the resumption of free trade negotiations,” said Kwon Kisu, an economics and international relations professor at Hankuk University of Foreign Studies. The fact that they did not “reflects the lingering reservations that still exist in Brazil regarding such an agreement”.
This was despite both leaders’ decision in February to upgrade bilateral ties to a strategic partnership.
Nevertheless, global economic conditions favoured renewed negotiations, he said. Both countries are seeking to diversify their trade relationships as US-China competition intensifies, protectionism rises, and sanctions and conflicts continue to disrupt global supply chains.
Brazil was shifting its trade strategy towards greater openness as it responded to trade tensions with the US and the spread of global protectionism, said Park Mi-sook, a research fellow at the Korea Institute for International Economic Policy.
In May, Brazil began provisionally applying its long-delayed trade agreement with the European Union after 25 years of talks. It also launched negotiations on an Economic Partnership Agreement with Japan in June, aiming to expand market access, reduce tariffs and strengthen critical resource supply chains.
“As Brazil has treated industrial cooperation as a core agenda in its agreements with the EU and Japan, if the revitalisation of manufacturing and industrial development – which has remained a priority regardless of changes in government – is adopted as a central pillar of a Korea-Mercosur trade agreement, the momentum for negotiations can be maintained,” Park wrote in a report published this month.

Brazil’s industrial policy focused on adding value to its abundant natural resources – including critical minerals, biofuels and biodiversity, she said. Brasilia is seeking foreign investment in higher-value-added stages of the supply chain, such as chemical refining, oxide separation and the production of advanced magnetic materials.
South Korea should structure any agreement in a way that respected that, Park said.
In that aspect, Seoul has a competitive advantage over both the EU and Japan “by achieving vertical integration from resources to refining to materials, supported by reliable domestic demand from its battery industry”, according to Park.
Kwon’s solution to ease South American concerns was simple: money and technology. “These are the two things it should bring to the common market instead of diplomatic language,” he said.
Closer exchanges between industrial sectors – similar to the relationship between Japan’s Keidanren business federation and Brazil’s National Confederation of Industry – could help accelerate negotiations, he added.
‘New phase’
Lee appeared mindful of those concerns when he emphasised the mutual benefits of a South Korea-Mercosur trade agreement.
In an interview with Spain’s EFE news agency last week, Lee said South Korea’s relationship with South America was “entering a new phase”.
“Cooperation between Korea and South America should evolve beyond the traditional exchange of natural resources for manufactured goods,” Lee said, adding that the partnership should create value together through innovation, investment, technology and human capital.
The president stressed the complementary nature of the two economies, noting that Mercosur members were global leaders in agriculture, food production, energy and critical minerals, while South Korea excelled in advanced manufacturing, digital technologies, shipbuilding, batteries and innovation.
“If we combine these strengths, we can build resilient value chains that benefit both regions,” Lee said.

Reliable partnerships were becoming increasingly important amid rising protectionism, geopolitical tensions, supply chain disruptions and growing concerns over energy security, he said. “In times like these, countries need trustworthy partners and trade based on clear rules and mutual trust.”
At a business round table in Sao Paulo on Tuesday, Lee highlighted cooperation in next-generation civil aircraft, critical mineral supply chains and K-beauty products as areas with significant potential.
“The intensifying technological competition, exemplified by the artificial intelligence revolution and shifting supply chains, is rapidly transforming global industries and the international economic order,” the president said. “Finding partners that can create synergy by leveraging each other’s strengths is more important than ever.”
If South Korean innovation and manufacturing capabilities were combined with Brazil’s abundant resources, the two countries could become “ideal partners in building resilient supply chains and leading future industries”, he added.
Lee is visiting Brazil, Chile and Argentina this week. He has identified expanding Seoul’s economic cooperation framework with South America as one of the central objectives of the visit.


Suspected landmine blast injures South Korean soldiers in DMZ

Japan asks for US$43 million to weed out cherry tree-devouring longhorn beetle

South Korea steps up to plug Europe’s jet fuel deficit

US announces AI dialogue with China, launches Board of Trade

South Korea

How South Korea can ease Brazilian concerns to unlock trade in South America

Brazilian President Luiz Inacio Lula da Silva (right) greets South Korean President Lee Jae Myung ahead of their meeting at the presidential office in Brasilia on Monday. Photo: Yonhap/dpa

South Korean President Lee Jae Myung (left) and Brazilian President Luiz Inacio Lula da Silva observe a presentation of troops at the Alvorada Palace in Brasilia on Monday. Photo: Reuters

The Carajas mine in Brazil’s Para state is one of the world’s largest iron ore quarries. Photo: Xinhua

South Korean President Lee Jae Myung attends a round table discussion with Brazilian business leaders in Sao Paulo on Tuesday. Photo: EPA

South Korean unions use new labour rules to push envelope on bonus demands

Members of the South Korean Confederation of Trade Unions hold signs reading “basic labour rights” during a rally in Seoul on July 16. Photo: EPA

Unionised workers of LS Cable & System prostrate themselves to call for the management to stop what they call its repression of the union’s activities in Seoul on Tuesday. Photo: Yonhap/EPA

South Korean President Lee Jae Myung (centre), alongside (from left) Amkor Technology Korea chief Lee Jin-an, SK Hynix head Kwak Noh-jung, Samsung Electronics vice chief Jun Young-hyun and Finance Minister Koo Yun-cheol, unveil investment plans for Gwangju on June 30. Photo: Yonhap/EPA

KakaoBank workers hold placards during a rally in front of its parent company’s headquarters in Seongnam, Gyeonggi province, on Tuesday. Photo: Yonhap/EPA

South Korean scientists solve 250-year-old dementia-linked brain mystery

The researchers found that gently stimulating vessels around the eyes and nose can enhance brain-waste clearance. Photo: Shutterstock

A doctor inspects a brain scan for signs of possible disease. Dementia is characterised by a build-up of toxic brain waste. Photo: Getty Images

An electron microscope image shows the small openings that researchers dubbed “arachnoid fenestrations”. Photo: Handout

The self-massage method Koh recommends involves using light pressure to help clear lymphatic vessels in the face and neck. Photo: Getty Images

How South Korean hypermarket chain’s fall reflects ‘time-poor’ consumer demands

A Homeplus store in Seoul. The financially troubled hypermarket chain has closed or suspended its outlets in South Korea. Photo: EPA

People crowd a shopping mall in South Korea in January. Department stores in the country were the only major retail segment to post higher sales in 2025. Photo: EPA

A worker drives a delivery truck of South Korean e-commerce giant Coupang in Seoul. Photo: AFP

A drone delivering food in Shenzhen, China’s Guangdong province. Photo: Xinhua

Why South Korea is racing to build a sovereign AI model for cybersecurity

Officials at the Korea Internet & Security Agency (KISA) check internet systems at the KISA situation room amid reports that several computers were struck by a new type of ransomware the previous night, in Seoul, South Korea, on June 28, 2017. Photo: EPA

The Anthropic website and its logo. Washington imposed new export restrictions on several advanced AI models, including Anthropic’s Claude Mythos 5. Photo: AP

South Korean President Lee Jae Myung speaks during a meeting in Jinju, South Gyeongsang province, on July 3. Photo: EPA

Brazil turns to China trade deal after Trump’s tariffs, as years of resistance end

Chinese President Xi Jinping (left), seen here with Brazilian President Luiz Inacio Lula da Silva in Brasilia, Brazil, in November, 2024. The pair have agreed to accelerate negotiations for a trade agreement between China and Mercosur. Photo: Xinhua

Uruguayan President Yamandu Orsi travelled to Beijing in February at the head of a 150-strong delegation. Photo: EPA

This Week in Asia

Economics

News

Asia

East Asia

World

Americas

Money and technology transfer are the keys to opening the door to free trade with Mercosur members, according to analysts


Money and technology transfer are the keys to opening the door to free trade with Mercosur members, according to analysts.


How South Korea can ease Brazilian concerns to unlock trade in South America

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Money and technology transfer are the keys to opening the door to free trade with Mercosur members, according to analysts

Money and technology transfer are the keys to opening the door to free trade with Mercosur members, according to analysts