President Lee Jae-myung walks toward the event venue after taking a commemorative photo with participants at the Korea-Brazil Business Roundtable held at a hotel in São Paulo, Brazil, on July 28 (local time). From left in the front row: Hyundai Motor Group Chairman Euisun Chung, ApexBrasil President Laudemir Müller, Minister of Trade, Industry and Energy Kim Jung-kwan, Vice President of Brazil Geraldo Alckmin, President Lee Jae-myung, Brazilian Minister of Development, Industry, Trade and Services Márcio Elias Rosa, FKI Chairman Ryu Jin, Embraer CEO Francisco Gomes Neto, and Hanjin Group Chairman Walter Cho. / Yonhap

South Korea and Brazil are embarking on the joint development of next-generation commercial aircraft. Building on the success of South Korean companies supplying key components for Brazilian aerospace company Embraer's C-390 military transport aircraft, the two nations plan to collaborate starting from the commercial aircraft development stage and expand the scope of cooperation into the space and aviation sectors. Leveraged by President Lee Jae-myung's state visit to Brazil, economic cooperation between the two countries has also broadened across the board, encompassing critical minerals, defense, bio, and trade and investment.

President Lee, who is on a tour of Brazil, said at the Korea-Brazil Business Roundtable held at a hotel in São Paulo on July 28 (local time), "If business leaders from both nations join forces, South Korea and Brazil can grow together as aircraft manufacturing powerhouses leading the global aviation market and as crucial partners in supply chain cooperation."

On that day, Korea Aerospace Industries (KAI) and Embraer signed a memorandum of understanding (MOU) for cooperation in the commercial aircraft and aerospace sectors. Embraer is recognized as one of the world's top three aircraft manufacturers alongside Boeing and Airbus. Regarding the joint development of commercial aircraft, Senior Presidential Secretary for Policy Kim Yong-beom stated, "The goal is to go beyond merely supplying components and participate from the development stage," adding, "Private companies and government agencies, centered around the Korea AeroSpace Administration (KASA) and the Office of the Senior Presidential Secretary for Policy, will jointly formulate strategies."

Enterprises from both nations signed a total of seven MOUs and one joint agreement that day. POSCO International entered into an MOU with Brazil's Meteoric for the stable procurement of rare earth raw materials and the establishment of a supply chain, while SK Biopharmaceuticals agreed to cooperate with Eurofarma on developing artificial intelligence (AI)-based epilepsy treatments.

The governments of both countries also agreed to operate a high-level coordination mechanism to ensure that inter-company cooperation leads to tangible outcomes. President Lee remarked, "Unless tariff or regulatory issues at the government level are resolved, cooperation between companies will not be easy," designating Senior Secretary Kim as the designated coordinator for bilateral economic cooperation. Brazilian President Luiz Inácio Lula da Silva also appointed Vice President Geraldo Alckmin as his counterpart.

The event was attended by FKI Chairman Ryu Jin, Hyundai Motor Group Chairman Euisun Chung, POSCO Group Chairman Chang In-hwa, Korean Air Chairman Walter Cho, KAI CEO Kim Jong-chul, SK Biopharmaceuticals CEO Dong-hoon Lee, Hanwha Ocean President Jung In-sub, and NAVER CEO Choi Soo-yeon.

Meanwhile, President Lee concluded his three-day state visit to Brazil on July 29 and departed for Santiago, Chile, the next destination on his tour.

                                                                                                              Hong Sun-mi