South Korea and Brazil Pledge to Resume Mercosur Trade Talks

South Korean President Lee Jae Myung and Brazilian President Luiz Inácio Lula da Silva met in Brasilia on July 27, 2026, to strengthen bilateral ties and diversify critical mineral supply chains. The leaders agreed to establish a joint working group to remove obstacles to trade negotiations with the Mercosur bloc, which have remained stalled since 2018. They aim to announce the resumption of these negotiations by December.

The two nations signed seven memorandums of understanding covering aerospace, energy, the digital economy, and the cultural sector. Specific agreements include streamlining regulations for Korean firms using Brazilian launch facilities and cooperating on lunar exploration. President Lula invited President Lee to return in September for a joint space vehicle launch at the Alcantara Space Center. The leaders also planned the creation of a joint defense industry committee later this year.

On July 28, President Lee attended a business roundtable in Sao Paulo, where he proposed three primary growth engines: joint development of next-generation commercial aircraft, supply-chain cooperation for minerals such as nickel and iron ore, and the expansion of the K-beauty industry. South Korean Director of National Policy Kim Yong-beom and Brazilian Vice President Geraldo Alckmin have been tasked with leading the efforts to resume the Mercosur trade deal and enhancing aerospace and defense cooperation.