President Lee Jae-myung Signs 'Mineral Alliance' MOU with Chile... Accompanied by POSCO Chairman Jang In-hwa

Lee Jae-myung Administration Signs MOU on Mineral Alliance with Chile… Moves to Secure Resources for Economic Security

President Lee Jae-myung visited Santiago, Chile, as the first stop of his South American tour and agreed to launch a ministerial-level consultative body to stabilize the core mineral supply chain. On the 30th local time, the two nations signed a memorandum of understanding (MOU) to significantly strengthen cooperation on strategic minerals such as lithium and copper. POSCO Group Chairman Jang In-hwa accompanied the president as part of the economic delegation, laying the groundwork for cooperation in the real economy. The launch of this consultative body is evaluated as a strategic move at the national level to secure essential resources amidst the global technological hegemony war.

The Critical Importance of Securing Lithium and Copper, the 'Rice' of the EV Era

Chile is the world's leading lithium producer and holds the largest copper reserves. This cooperation agreement embodies a clear strategic intent to stably secure core minerals essential for the approaching era of electric vehicles and energy transition. For advanced nations leading the semiconductor and artificial intelligence (AI) industries, a stable supply of raw materials is directly linked to national economic security. In particular, Chairman Jang In-hwa's attendance underscores an industrial calculation for domestic companies to participate directly in mineral mining and value chains in the South American region, backed by government diplomatic support. This is analyzed as a crucial first step toward public-private cooperation to localize supply chains to ensure stable raw materials for the steel and battery industries.

Furthermore, the decision to reactivate the Free Trade Commission after 10 years during this visit is cited as a major achievement. It signifies a will to continuously lower trade barriers and improve the investment environment between the two nations, going beyond simple raw material imports. President Lee's emphasis on expanding trade and investment is expected to provide institutional backing for companies to establish local production bases. This series of agreements is expected to contribute to solving the urgent task of the Korean economy: rapidly building friendly and stable alternative supply chains amidst the trend of de-Chinaization.

The Intersection of Security Threats and Resource Diplomacy

While economic diplomacy for resource acquisition is active, geopolitical risks in the Middle East are also acting as direct variables for the national economy. In a press briefing held in Buenos Aires, Argentina, Blue House National Security Office Director Wi Seong-rak expressed a cautious stance regarding military asset support for the stabilization of the Strait of Hormuz. Director Wi explained that the U.S. side had not directly requested the dispatch of specific assets, adding that the process of building a consensus, including domestic legal procedures and public opinion, remains. Securing freedom of navigation through the Strait of Hormuz is a matter directly linked to South Korea's economic security, given its high dependence on crude oil imports.

Director Wi emphasized, "Freedom of navigation in the Strait of Hormuz carries significant interest for our economic security. Therefore, I believe we must actively participate in and contribute to that process."

The dispatch of military assets necessarily requires the National Assembly's consent. Therefore, even if the government confirms a specific dispatch plan, the process of coordinating political differences and garnering public support is inevitable. This calls for diplomatic pragmatism that maximizes national interests while minimizing the burden on the economy and the public.

Economic Outlook Following Global Supply Chain Reshuffling

The government's South American diplomacy is positively evaluated for shifting from formal visits to focusing on resource acquisition directly linked to national industrial competitiveness. The regularization of a ministerial-level consultative body with Chile will serve as a meaningful defense mechanism against future surges in global raw material prices or supply chain bottlenecks. However, if it ends with summit agreements and MOUs, it will be difficult to expect substantial economic effects. Subsequent working-level discussions must follow with concrete institutional support, such as tax benefits and infrastructure support for domestic companies operating in Chile. It is necessary to quickly establish logistics and financial support systems that allow minerals secured stably to be smoothly imported into the country, in linkage with domestic policies fostering high-tech industries such as the Mega Special Zone Act.