President Lee Jae-myung, on a state visit to Brazil, presented a blueprint to double bilateral trade within two years, driven by cooperation across all industries, including critical minerals. As discussions on opening the market to Brazilian beef and pork also advance, negotiations for a free trade agreement (FTA) between Korea and the Southern Common Market (Mercosur) are expected to gain momentum.
At the Korea-Brazil Business Roundtable (BRT) held in São Paulo, Brazil, on the 28th, President Lee said, "If Korea's innovative technology and manufacturing capabilities combine with Brazil's abundant resources, the two countries can become optimal partners in leading stable supply chains and future industries."
The business community also lent support to expanding cooperation between the two nations. Ryu Jin, chairman of the Federation of Korean Industries, said, "Brazil is a country leading the global supply chain based on energy, minerals, and food, while Korea has competitiveness in advanced manufacturing and digital innovation." He added, "The two countries should become partners of the times, working together even in future advanced industries."
Cooperation began in earnest in the aerospace and critical minerals sectors. Korea Aerospace Industries (KAI) and Brazilian aircraft manufacturer Embraer signed a memorandum of understanding (MOU) for cooperation in commercial aircraft and advanced air mobility (AAM), while POSCO International signed an MOU with Brazilian mining company Meteoric Resources to build a rare earth supply chain. SK Biopharmaceuticals also embarked on artificial intelligence (AI)-based digital healthcare cooperation with Eurofarma, Brazil's largest pharmaceutical company. A total of seven MOUs were signed between companies of the two countries that day.
Hyundai Motor is pursuing cooperation in future energy sectors such as green hydrogen, hydrogen trucks, and small modular reactors (SMR). Regarding the outlook for the Brazilian market, Hyundai Motor Group Executive Chairman Euisun Chung expressed his determination to tap the local market, saying, "There is a long way to go. China is also pushing hard (to enter the market)." Samsung Electronics and LG Electronics also decided to expand cooperation in line with Brazil's digital transformation policy.
Discussions on opening the agricultural and livestock product market also showed progress. The joint statement from the bilateral summit included content stating that the Korean government will conduct on-site technical inspections in Brazil in August for beef imports and pursue an expansion of regions permitted to export Brazilian pork. The Korea Importers Association said, "There is a need to diversify beef import sources to Brazil and others to establish a stable supply base," requesting swift progress on quarantine negotiations and the Korea-Mercosur FTA. As the resumption of negotiations is being pursued in conjunction with the Mercosur summit this December, the stalled FTA discussions are also expected to reach a turning point.
However, since a backlash from the domestic agricultural and livestock industry is expected if the opening of the beef and pork markets becomes a reality, the government plans to continue negotiations while considering both market opening and industry protection.
