President Lee Jae-myung, on a state visit to Brazil, presented a blueprint to double trade between the two countries within two years, driven by industry-wide cooperation in areas such as critical minerals. With discussions on opening the market to Brazilian beef and pork also advancing, negotiations on a free trade agreement (FTA) between Korea and the Southern Common Market (Mercosur) are expected to gain momentum.
"If Korea's innovative technology and manufacturing capabilities combine with Brazil's abundant resources, the two countries can become the optimal partners leading stable supply chains and future industries," Lee said at the Korea-Brazil Business Roundtable (BRT) held in Sao Paulo, Brazil, on the 28th.
The business community also lent support to expanding cooperation between the two nations. Cooperation began in earnest first 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 rare earth supply chains. SK Biopharmaceuticals also launched artificial intelligence (AI)-based digital healthcare cooperation with Eurofarma, Brazil's largest pharmaceutical company. Seven MOUs were signed between companies of the two countries that day.
Hyundai Motor is pursuing cooperation in future energy sectors including green hydrogen, hydrogen trucks, and small modular reactors (SMR). Hyundai Motor Group Chairman Euisun Chung also expressed his intention to tap into the local 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 market also showed progress. The joint statement from the summit between the two nations' leaders included content stating that the Korean government will conduct an on-site technical inspection in Brazil in August for beef imports and pursue an expansion of the 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 quarantine negotiations and the prompt pursuit of a Korea-Mercosur FTA. As the resumption of negotiations is being pursued on the occasion of the Mercosur summit this December, the FTA discussions, which had been at a standstill, are also expected to reach a turning point.
