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Chile and South Korea to promote reciprocal investment

30 October, 2023
  • The countries’ investment promotion agencies, InvestChile and KOTRA, signed a MoU to boost cooperation and business.

InvestChile Director Karla Flores and Korea Trade-Investment Promotion Agency (KOTRA) President Jeoung Yeol Yu signed a memorandum of understanding (MoU) to promote investment between the two countries.

Signed at the SOFOFA offices in the presence of Chile’s Economy, Development and Tourism Minister Nicolás Grau, the document addresses issues like exploring business opportunities in all areas of interest to both nations, exchanging information on investment policies and opportunities and promoting industry opportunities and agreements to support project development.

Notably, a tour of Asia, organized by InvestChile and led by Economy Minister Nicolás Grau, ended just a few weeks ago. The roadshow visited Japan, Korea and China.

A Key Partner

On the same day, Minister Grau held a bilateral meeting with Korea’s Minister of Trade, Industry and Energy, Moon Kyu Bang.

«The Republic of Korea is our fifth-largest trading partner, moving very significant Chilean exports. We believe there is room to expand these exports in terms of industry as well as quantity. We are certain this strong trade relationship is a great starting point for further developing foreign investment in both countries,» said Economy Minister Nicolás Grau.

The Minister added, «This memorandum of understanding is a very important step toward sharing information and experiences and, thus, bringing our countries closer together. After visiting Korea, we believe we can offer great investment opportunities in Chile, especially given our lithium production-based relationship. For example, lithium is important for Korean battery production.»

Business Roundtable

The day continued with a business roundtable where Chilean and Korean companies discussed opportunities for collaboration between the two countries and for strengthening economic and business ties.

They also discussed the need to increase Chilean exports to Korea and work toward new investments in energy transition, clean energy and critical minerals.

The meeting was attended by representatives from several Korean companies like Samsung Electronics, LG Electronics, Hyundai Motors Group, POSCO, Lotte Chemical, Korea South-East Power Co, and Korea Southern Power Co. Korean business and industry organizations, including the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), K-EXIM Bank, the Korea Chamber of Commerce and Industry (KCCI), the Hydrogen Convergence Alliance (H2KOREA), and Korea Offshore & Shipbuilding Association (KOSHIPA) also participated.

MoU Korea and Codelco

Moreover, Codelco, Chile’s state-owned mining company, signed a MoU with KEXIM, an official Korean agency offering extensive export credit and guarantees to help Korean companies do business abroad.

The agreement explores opportunities to support Codelco’s financing as it relates to supplying copper to Korean entities.

This includes financing investment projects, mine development and existing operations, and facilitating overseas business or purchasing by Korean companies.

The signed document highlights the importance of minerals like copper, which are critical to the global economy, especially in the electric vehicle and battery sectors, where Korean companies are very active.