Lee, Lula agree to cooperate on critical minerals, speed along Korea-Mercosur trade pact in Brazil summit

President Lee Jae Myung and Brazilian President Luiz Inácio Lula da Silva agreed to strengthen cooperation in the defense industry, aerospace, critical minerals and trade and investment at a summit on Monday.

The two leaders also agreed that a trade pact between Korea and Mercosur, the South American trade bloc, should not be delayed any longer.

“In an era of growing uncertainty in the trade environment, a trade agreement between Korea and Mercosur is an important task that can no longer be delayed,” Lee said during a joint press briefing following their 140-minute summit at the presidential palace in Brasília. 

Mercosur, established by Argentina, Brazil, Paraguay and Uruguay in 1991, is the world’s fifth largest trading bloc and is rich in critical mineral resources, including lithium and nickel.

During their summit, Lee and Lula discussed plans to mark the inaugural year of their bilateral strategic partnership. They also agreed to strengthen cooperation in the resource and energy sectors to diversify supply chains and expand cooperation between companies of both countries across the entire life cycle of critical mineral supply chains.

Regarding future advanced industries such as defense, aerospace, aviation and mobility, the two agreed to continue their cooperation by building on Brazil’s C-390 transport aircraft, which is being produced using components from Korean small- and medium-sized enterprises.

Additionally, the leaders agreed to establish a direct, top-level communication channel between the two countries — centered on Kim Yong-beom, the presidential chief of staff for policy, and Brazilian Vice President Geraldo Alckmin — to fully realize such economic cooperation.

“By identifying sensitive issues between the two nations, we plan to ensure that there are no obstacles to resuming trade agreement consultations between Korea and Mercosur in the future,” Lula said.

Korea and Brazil signed seven memorandums of understanding in the fields of aerospace, sports, education, energy, industrial technology, film and cybersecurity on the occasion of the summit.

The MOU on aerospace cooperation includes provisions to streamline permit procedures for Korean companies that use space launch sites in Brazil, as well as cooperation in lunar exploration, space industry development and sharing of satellite data.

The MOU on industrial technology calls for expanding supply chain infrastructure and technology cooperation across seven strategic sectors, including AI, semiconductors, automobiles, shipbuilding and batteries.

The energy cooperation MOU aims for cooperation in industries such as renewable energy, smart grids and energy efficiency to accelerate the energy transition.

Korea is diversifying its supply chain through such cooperation with Brazil, which holds the world’s second-largest reserves of rare earth elements needed for semiconductors.

Lee’s three-day state visit to Brazil reciprocates Lula’s state visit to Seoul in February and is part of an 11-day tour that will take him to Chile and Argentina later this week.

The two first met through a bilateral summit on the margins of the Group of 7 (G7) summit in Canada in June 2025. They also chatted briefly at the G7 summit in France last month.

This is the first state visit by a Korean president to Brazil in 11 years since former President Park Geun-hye’s trip in 2015.

Lee and Lula’s latest summit reaffirmed the special bond the leaders forged in their past meetings, during which they shared their experiences of growing up as youth laborers.

Earlier Monday, Lee, escorted by a mounted honor guard, arrived at the Brazilian presidential palace and was greeted by Lula with a hug for the welcoming ceremony.

They then held their bilateral summit, attended an MOU signing ceremony, spoke at a joint press briefing and held a state luncheon.

The summit was convened at the Palácio da Alvorada, the Brazilian president’s official residence designed by world-renowned architect Oscar Niemeyer and listed as a National Historic Heritage Site. Lula previously hosted only Chinese President Xi Jinping, Indian Prime Minister Narendra Modi and former French President Jacques Chirac at the palace.

Mara Salles, a renowned chef from São Paulo who served as a special judge on cooking competition program “Top Chef Brasil,” prepared the meal comprised of Brazilian dishes such as Picadinho (beef stew), Acaçá (corn porridge) and Cocada, a traditional coconut dessert, the Blue House said in a statement.

Later, Lula hosted a cultural reception featuring performances by local artists for Lee at the Itamaraty Palace, headquarters of Brazil’s Foreign Ministry and a Unesco World Heritage site.

Business leaders from both countries also attended the reception, including Federation of Korean Industries Chairman Ryu Jin, Posco Group Chairman Chang In-hwa Hanjin Group Chairman Walter Cho and Samsung Electronics President Park Seung-hee.

“President Lee conveyed to the business leaders of both countries that our government intends to actively support them through economic diplomacy so that this state visit can serve as an opportunity to broaden the foundation for economic cooperation among Korean companies and create new market entry and investment opportunities,” presidential spokesperson Kang Yu-jung said in a statement.

Lee later Monday arrived in Sao Paulo to take part in a Korea-Brazil business roundtable scheduled for Tuesday and meet with the Korean community. 

BY SARAH KIM [[email protected]]