[Mexico City = E-Daily Reporter Kim Sang-yoon ] In the presence of President Lee Jae-myung and Mexican President Claudia Sheinbaum, South Korean business leaders called for the swift conclusion of the South Korea-Mexico Economic Agreement. They cited the expanding scope of business operations in Mexico alongside shifting tariff policies, as well as increased uncertainties in business plans targeting the North American market due to the review of the United States-Mexico-Canada Agreement (USMCA).

The two leaders co-chaired a business roundtable at the Presidential Palace in Mexico City on the afternoon of the 24th (local time). The roundtable was attended by about 30 people, including high-ranking government officials from both countries and nine South Korean business leaders, such as Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and Chairman of SK Group, and Koo Kwang-mo, Chairman of LG Group.

Also in attendance were LS Group Chairman Koo Ja-eun; Samsung Electronics CEO and President Noh Tae-moon, who also heads the DX Division; Kia President Song Ho-sung; and POSCO International President Lee Gye-in. Doosan Bobcat CEO and Vice Chairman Park Sung-chul, Amorepacific CEO Kim Seung-hwan, and Nongshim CEO Cho Yong-chul were also present. Chairman Choi was listed as both the Chairman of SK Group and the head of the Korea Chamber of Commerce and Industry, a major economic organization.
President Lee emphasized that now—amid growing uncertainty in the global economy and rapidly changing supply chains—is the opportune moment to advance cooperation between the two countries. He stated that South Korea would contribute as a partner to “Plan Mexico,” President Sheinbaum’s initiative to strengthen industrial competitiveness and expand infrastructure. Business leaders also noted that they have contributed to the development of Mexico’s high-value-added manufacturing sector and regional supply chains through local investments, and expressed their intention to actively participate in Plan Mexico.
Senior Secretary for Public Relations Seong Ki-hong reported that business leaders specifically expressed their hope for the swift conclusion of an economic agreement and urged the Mexican government to address the increased uncertainty in business activities resulting from the USMCA review.

The business leaders’ call for the conclusion of an economic agreement stems from the fact that their operations in Mexico are steadily expanding. Samsung Electronics manufactures home appliances in Querétaro and televisions in Tijuana. LG Electronics operates local production facilities for TV and air conditioner compressors, while Kia operates a vehicle assembly plant in the state of Nuevo León. LS Cable is investing in power distribution equipment and automotive wire production facilities, while POSCO International manufactures drive motor cores for electric vehicles. Mexico also serves as a consumer market for Amorepacific and Nongshim, which sell cosmetics and instant noodles, respectively.

As local operations expand, tariffs and rules of origin directly impact production costs and export plans. Starting this year, Mexico has imposed tariffs ranging from 5% to 50% on approximately 1,400 items imported from countries, including South Korea, with which it has not yet concluded a trade agreement. Through consultations with the South Korean government, certain auto parts and steel products were exempted from the tariff hikes, and the tariff reduction system available to local manufacturers has been maintained. While the government views the short-term impact as limited, companies must rely on item-specific exemptions and Mexico’s domestic systems. It also remains to be seen how the review of the USMCA will affect North American rules of origin.

The requests from Korean business leaders align with the new consultation channel established by the two governments today. The two countries agreed to sign an “Initiative on Economic, Industrial, and Resource Cooperation” and to operate a director-general-level joint committee and working groups. The agreement also includes provisions to promote the conclusion of a trade agreement. This effectively opens a channel to continue discussing the agenda and differences regarding an economic agreement, starting with cooperation on industry and supply chains.

The Blue House does not characterize these consultations as a resumption of Free Trade Agreement (FTA) negotiations centered on market liberalization. The government explains that the priority is to first expand cooperation in trade, investment, and industrial supply chains. However, both within and outside the government, there is a view that these discussions could lead to a Comprehensive Economic Partnership Agreement (CEPA) that encompasses both goods and services markets. Although negotiations on tariff elimination have not begun immediately, some point out that alleviating the tariff burden—a key concern for Korean companies—will ultimately require consultations between the two countries on the scope of market opening.