South Korea and Brazil have upgraded their bilateral relationship to a 'strategic partnership' during a meeting between South Korean President Lee Jae-myung and Brazilian President Luiz Inácio Lula da Silva, marking a historic new phase in their diplomatic ties established 67 years ago. They emphasize the need for a trade agreement between South Korea and the Southern Common Market (Mercosur), setting the stage for deeper economic collaboration. This move aligns with South Korea's strategy to enhance economic ties with emerging markets beyond its traditional trade partners, the US and China.

In the joint press conference that followed their summit, President Lee unveiled a '4-Year Action Plan' aiming to solidify cooperation across various fields such as politics, economics, and cultural exchanges. Both leaders expressed mutual agreement on expediting negotiations for a trade pact, which had previously stalled, suggesting a revitalization of discussions that could open new markets and opportunities for both nations. Additionally, they emphasized the significance of establishing legal and institutional frameworks to support expanded trade relations.

During the summit, the leaders discussed enhancing supply chain cooperation, particularly in critical minerals and rare earth elements, an area where Brazil holds significant reserves. President Lula highlighted Brazil's status as the world's largest known reserve of freshwater rare earth minerals and urged for investments from South Korean firms in this sector. They also signed 10 memoranda of understanding (MOUs) covering various sectors such as SMEs, health regulations, and agriculture, which are expected to diversify the trade focus beyond large enterprises, thus promoting broader economic cooperation and cultural exchange, particularly in sectors like cosmetics and agriculture.