President Lee & Milley’s First Summit Meeting
“Confirming the willingness of Korean companies such as POSCO to continue supporting the local lithium projects
Archen government”
Agreements on the Prevention of Double Taxation of Argentine Crude Oil from Next Year…Reduce corporate 稅 burden
사진 확대 President Lee Jae Myung and President Javier Milay shake hands after an official commemorative photo at the presidential palace in Buenos Aires, Argentina, on the 31st (local time). Yonhap News Agency
President Lee Jae Myung, who is on an official visit to Argentina, held a summit with Argentine President Javier Milay at the presidential palace in Buenos Aires on the 31st (local time) to discuss ways to develop key minerals such as lithium and cooperate in building supply chains. At the same time, President Lee agreed with President Milley to import Argentine crude oil, which was introduced on a trial basis this year by Woori Naga, starting next year, laying the groundwork for diversification of resource and energy supply chains.
Moon Sung-rak, head of the Blue House National Security Office, said during a briefing on the summit at the local press center that the two governments signed a memorandum of understanding (MOU) for key mineral cooperation in the wake of the meeting.
Under the MOU signed by the two countries, information on key mineral policies and investment systems will be shared in the future, and investment and joint projects between companies from the two countries will be promoted throughout the entire value chain, including the exploration, mining, and processing of lithium. Argentina is the world’s fourth-largest lithium reserve, and POSCO Holdings is currently operating a lithium hydroxide production plant by securing a salt lake mine there.
We have confirmed the Argentine government’s continued willingness to support our company’s lithium business, Wi said. “We will expand investment opportunities for Korean companies in various mineral fields such as copper in the future.”
The result of strengthening energy security through diversification of crude oil introduction lines was also achieved. In order to improve the crude oil import structure concentrated in the Middle East and respond to geopolitical uncertainties, the Korean government has introduced 880,000 barrels of Argentine crude on a trial basis this year. In the wake of the talks, the two countries decided to start stable regular imports of crude oil next year. As Argentina plans to significantly increase crude oil and natural gas production, the two countries plan to expand their energy cooperation to natural gas and nuclear fields. However, the specific size of the introduction has not been confirmed.
In the economic and trade sector, a double taxation prevention agreement has been finalized, reducing the tax burden on Korean companies entering the country and increasing their investment predictability. In addition, the two countries agreed to resume trade agreement (TA) negotiations with MERCOSUR, South America’s largest economic block, which includes Brazil and Argentina, by the end of this year. While expanding its entry into the South American market with a population of 280 million, it has also decided to continue consulting on hygiene monitoring standards in the agricultural, livestock and food sectors.
The two governments decided to operate the Joint Economic Committee and the Energy Resources Cooperation Committee immediately to systematically implement the results of the talks. Through this, we plan to solve corporate difficulties and periodically check practical cooperation tasks in the mineral and energy sectors.
Director Wi said that the meeting was held in a very close atmosphere, even though it was a meeting between two leaders with different ideological tendencies. President Milley, an economist-turned-conservative, has a small government and tightening finances as key national agendas. During the presidential election, he performed electric saw performances and expressed his willingness to reform the public sector, tighten, reduce budget, and ease regulations.
Director Wi said, “Contrary to pre-conceptions, the two leaders formed a very deep consensus based on mutual understanding and communicated very smoothly.”
Reporter Oh Soo-hyun of Buenos Aires