Korea and Mexico Settle Investment Treaty Revision After Seven Years

South Korea and Mexico have settled the main outstanding issues in negotiations to revise their bilateral investment protection agreement, ending seven years of talks and adding a more detailed framework for investment between the two countries.

The breakthrough was announced after President Lee Jae Myung met Mexican President Claudia Sheinbaum in Mexico City. The summit produced 16 memorandums of understanding spanning seven areas, including the economy, finance, education, culture, tourism, development and customs. The two governments also adopted a separate declaration on cooperation in artificial intelligence.

National Security Adviser Wi Sung-lac said the revised investment framework would recognize the legitimate regulatory authority of the country hosting an investment while strengthening substantive protections for Korean companies. Those protections include provisions concerning the recovery of invested funds and compensation for losses.

The settlement also introduces measures intended to discourage indiscriminate claims by shell companies and improve dispute-settlement procedures. It establishes a basis for allowing investment funds to be transferred even during a foreign exchange crisis and for protecting investors against excessive tax measures.

Financial cooperation formed another part of the summit package. The export-import banks of the two countries agreed to create a $100 million on-lending facility. Seoul and Mexico City also plan to expand information sharing on intellectual property protection and illegally cleared goods.

Energy and advanced industries were identified as additional pillars of the relationship. The leaders noted that Korean companies have secured an additional 13 million barrels of Mexican crude oil since May and agreed to continue work on a stable oil supply chain. They also designated AI, digital industries, aerospace and defense as promising areas for broader cooperation.

In aerospace, the proposed framework is expected to extend beyond aircraft sales to local production, maintenance, supply-chain participation, financing and workforce training. The two sides also discussed potential Korean contributions to Mexico’s military modernization.

The summit agreements extend into culture, education and public safety. The governments plan to pursue a K-Culture Center in Mexico, establish a working group this year for a government scholarship program, and strengthen cooperation against transnational crimes such as voice phishing and investment fraud. Cooperation in agricultural technology and anti-corruption work is also planned.

The treaty settlement gives the bilateral relationship a more concrete institutional foundation after an earlier business meeting emphasized the need for stronger investment rules. For Seoul, the package is also intended to support Korean companies seeking a wider presence in Mexico and more resilient supply-chain links to North American and Latin American markets.