South Korean President Lee Jae Myung and Brazilian President Luiz Inacio Lula da Silva agreed in Brasilia to deepen co-operation and pursue the resumption of South Korea-Mercosur trade talks.

The meeting took place on Monday (27 July), according to South Korea’s government-affiliated Yonhap News Agency, and was the leaders’ second bilateral summit this year after talks in Seoul in February, when they agreed to raise ties to a strategic partnership.

In a joint statement issued after the summit, both sides said they would reinforce co-operation as strategic partners linking South America and Asia.

Lee and Lula also underlined the need to resume negotiations on a free trade agreement between South Korea and Mercosur.

Mercosur is a South American economic and political bloc consisting of Argentina, Brazil, Paraguay, Uruguay, and Bolivia.

Presidential spokesperson Kang Yu-jung, as cited in the report, said they agreed to create a joint working group aimed at securing a declaration on restarting negotiations at the Mercosur summit in December.

South Korea and Mercosur opened trade negotiations in 2018, but the talks have been on hold since late 2021.

The two presidents also agreed to widen co-operation across the critical minerals supply chain by combining Brazil’s mineral resources with South Korea’s industrial and technological capabilities, according to Kang.

Lula said South Korean companies had contributed to Brazil’s economy and industry and pledged support for them to increase investment and operate in a stable environment.

In a joint press announcement after the summit, Lula invited Lee to visit Brazil again in September for the planned joint launch of a space launch vehicle at the Alcantara Space Centre.

During Lee’s state visit, which began on Sunday (26 July) as part of a three-nation South America tour including Argentina and Chile, the two countries signed seven memorandums of understanding covering aerospace, supply chains and cultural co-operation.

According to Seoul’s presidential office, one memorandum on aerospace co-operation is designed to simplify regulations and procedures for South Korean companies using Brazilian launch facilities, while also backing co-operation in lunar exploration, the space sector and satellite data sharing.

The agreements also contain steps to strengthen supply chain co-operation and broaden exchanges in education, sport and the film industry.