[Friends for decades] Chile, Korea emphasize free trade amid growing protectionism
Published: 19 Sep. 2022, 14:45
Updated: 24 Sep. 2022, 22:53
![Chile's President Montalva Eduardo Frei, far left, meets with Lee Kung-hee, at the time the chairman of Samsung Group, far right, at the Shilla Hotel in central Seoul on Nov. 22, 1994. [JOONGANG PHOTO]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/760e3ac6-b70d-41c2-9bae-73f609d231ff.jpg)
Chile's President Montalva Eduardo Frei, far left, meets with Lee Kung-hee, at the time the chairman of Samsung Group, far right, at the Shilla Hotel in central Seoul on Nov. 22, 1994. [JOONGANG PHOTO]
Growing protectionist policies and evolving regional trade dynamics are both a challenge and an opportunity for Chile and Korea, the first two countries to ink a free trade agreement between the Americas and the Indo-Pacific, said Mathias Francke, the new Chilean ambassador to Korea.
“We are very concerned of the impact these geopolitical situations may have,” said Francke, speaking at the embassy in Seoul last month, in response to a question about the U.S.-China rivalry in the region and ongoing trade disputes between Japan and Korea.
The four nations are Chile’s top four export partners today.
“In respecting international rules, democratic values and freedom, and multilateralism, we want to maintain our good partnership with all of our top trading partners, while continuing to diversify our trade ties,” Francke said.
Of Chile’s top trading Asian partners, Korea was the first to sign an FTA with it in 2003.
It may also be the first in the group to join the world’s first digital-only trade deal that Chile signed with New Zealand and Singapore last year, the Digital Economy Partnership Agreement. Korea began its accession process in January.
Chile and Korea’s affinity to open, free trade is not a surprise given where their national values stand today, said the envoy.
“Today’s trade goes beyond the exchange of goods and services,” Francke said. “They’ll have to account for the global value chain, as well as the impact on the environment, and other values on gender [equality], anti-corruption and new disciplines.”
The Chileans may be undertaking a new reckoning of their values, after a nationwide protest two years ago led to a rewriting of its constitution.
Such sequence of events is not completely new to those in Korea either, who with candlelight vigils ousted a president for corruption five years ago.
As the two nations celebrate their 60 years of diplomatic relations this year, the Korea JoongAng Daily sat down with Francke at the Chilean Embassy in Seoul on Aug. 5 to hear more about the shared history between Chile and Korea, countries which have weathered cold war dynamics as well as some recent domestic unrests, for clues on how the two may be poised to navigate a growingly polarized world today.
The following are edited excerpts of the interview.
![Chilean Ambassador to Korea Mathias Francke speaks with the Korea JoongAng Daily at the embassy in Seoul on Aug. 5. [PARK SANG-MOON]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/a3f9e1e7-600e-4872-89c4-36f39995c7bc.jpg)
Chilean Ambassador to Korea Mathias Francke speaks with the Korea JoongAng Daily at the embassy in Seoul on Aug. 5. [PARK SANG-MOON]
Chile and Korea established diplomatic ties in 1962, but it was even earlier, in 1949, when Chile became the first Latin American nation to recognize Korea. What prompted that call?
Chile’s president at the time, Mr. Gabriel González Videla, understood the importance for supporting the most affected countries after World War II, and made that call to recognize Korea sooner than some other nations. Chile also contributed financially to the UN operations after the Korean War, and even received a Korean refugee, who came on the Red Cross program. The records say the man settled down in Temuco, a rainy city located in southern Chile.
What was the Chilean objective in establishing ties with Korea in 1962?
Since the very beginning, diplomatic and trade ties were linked. The rapid growth of the Korean economy after the Korean War made the country more visible to nations in Latin America. The Cold War also played a part in Chile’s decision to be a partner with Korea. It was a wise decision by President Jorge Alessandri at that time, since it opened the door to our bilateral trade and political links that made our countries like-minded partners with common values and goals.
![Thousands of Koreans on the streets of Gwanghwamun to call for impeachment of President Park Geun-hye on Dec. 10, 2016. [KIM SEONG-RYONG]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/51989aac-bd5e-406f-a8e0-29a670bbbfcf.jpg)
Thousands of Koreans on the streets of Gwanghwamun to call for impeachment of President Park Geun-hye on Dec. 10, 2016. [KIM SEONG-RYONG]
Speaking of common values, both Chile and Korea saw mass protests in recent years that sparked a nationwide conversation on constitutional reform or ended with a presidential impeachment. How should the rest of the world understand these mass protests in democracies?
In Chile’s case, the protests in 2019 were about deep-rooted issues in the nation. The constitution that we have today, though it was reformed many times, was first drafted when the country was ruled by a military regime. But that wasn’t the only issue. Now there is a national agreement on the need to change the constitution, to build something new to reflect what the country had become after all these years and to reflect what the Chileans want for the future of their country.
![A woman kisses a Chilean flag while people rejecting the new constitution draft celebrate after knowing the first results of the referendum vote, in Santiago, on Sept. 4. A resounding majority in Chile rejected the proposed constitution that sought to change the one inherited from the Augusto Pinochet's dictatorship (1973-1989) for one with more social rights. With almost 100 percent of votes counted, the reject camp led with nearly 62 percent compared to just 38 percent for those in favor. [AFP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/200f15a9-0ddd-4110-8871-fdca6660c802.jpg)
A woman kisses a Chilean flag while people rejecting the new constitution draft celebrate after knowing the first results of the referendum vote, in Santiago, on Sept. 4. A resounding majority in Chile rejected the proposed constitution that sought to change the one inherited from the Augusto Pinochet's dictatorship (1973-1989) for one with more social rights. With almost 100 percent of votes counted, the reject camp led with nearly 62 percent compared to just 38 percent for those in favor. [AFP/YONHAP]
Eighteen years since the FTA went into effect between Chile and Korea, how does Chile assess the agreement’s impact on its economy?
Our assessment is positive, given our exports to this country have doubled and the number of products exported jumped from 193 in 2004 to 331 in 2020 and companies exporting to Korea increased from 354 to 576 in the same period.
Although copper and its byproducts are the main export accounting for approximately 70 percent of our exports, sales to Korea of non-copper goods have also grown rapidly in recent years. For instance, the FTA put our wine on the tables of Korean restaurants and households, and over the years we’ve seen Korean consumers become more and more sophisticated and preferring higher-end wines from Chile.
We began a process of updating our FTA in 2016, and the new FTA is expected to have chapters in areas such as e-commerce, global value chains, trade and gender, environment and trade facilitation. We are hoping that the modernization of the agreement will create new market opportunities for Chilean exports in areas such as dairy products like cheese, as well as honey, meats, vegetables and some fruits, so they can compete in equal footing with other countries in the Korean market.
Although copper and its byproducts are the main export accounting for approximately 70 percent of our exports, sales to Korea of non-copper goods have also grown rapidly in recent years. For instance, the FTA put our wine on the tables of Korean restaurants and households, and over the years we’ve seen Korean consumers become more and more sophisticated and preferring higher-end wines from Chile.
We began a process of updating our FTA in 2016, and the new FTA is expected to have chapters in areas such as e-commerce, global value chains, trade and gender, environment and trade facilitation. We are hoping that the modernization of the agreement will create new market opportunities for Chilean exports in areas such as dairy products like cheese, as well as honey, meats, vegetables and some fruits, so they can compete in equal footing with other countries in the Korean market.
Given that many of the top export partners for Chile are located in the Indo-Pacific, the recent trade disputes and rivalries in the region must be a growing concern for the country. Has the country worked on a strategy to diversify its trade network in the region?
China, Korea and Japan are all our important partners in trade, so the recent geopolitical tensions in the region have been a great concern for us, and we have many in the private sector monitoring the situations closely.
When it comes to diversification of our exports, there's no simple answer. We have a trade office in Korea at the moment, as well as an agricultural office, for a concerted effort from Chilean government and businesses to address this issue.
When it comes to diversification of our exports, there's no simple answer. We have a trade office in Korea at the moment, as well as an agricultural office, for a concerted effort from Chilean government and businesses to address this issue.
![An aerial view shows the brine pools and processing areas of the Soquimich lithium mine on the Atacama salt flat in the Atacama desert of northern Chile, on Jan. 10, 2013. [REUTERS/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/a95a56ce-72e6-46bc-ae47-96467441c978.jpg)
An aerial view shows the brine pools and processing areas of the Soquimich lithium mine on the Atacama salt flat in the Atacama desert of northern Chile, on Jan. 10, 2013. [REUTERS/YONHAP]
Electric mobility and green hydrogen seem to be buzzwords among policymakers today, in light of growing climate change crises. Chile and Korea signed an agreement last year on green hydrogen when its energy minister visited Seoul. What’s next on this agenda?
The next stage would be the consolidation of the investments of Korean companies in green hydrogen projects to be developed in Chile. There is an extended presence of Korean companies in the field of solar energy and photovoltaic panels, particularly in our northern regions due to favorable climate conditions. Chile and Korea will be working on clean energy and electric mobility with other partners in the region such as Argentina. Chile, Argentina and Bolivia are also three countries with an important share of the world’s lithium reserves.
With Chile’s southern tip situated close to Antarctica, the country has also welcomed Korean scientists to work together on research in the southern pole. What’s the latest on that front?
We have had Korean scientists working with Chileans in the Punta Arenas, the southernmost city of Chile that is the base for all our operations in Antarctica, and our research bases in Antarctica are also quite close, so we are keen for a closer cooperation on the Antarctic research. At the moment we’re working to sign an agreement with Korea for a type of civilian training for operation in the Antarctic waters.
![The coast of Fildes Bay, in Rey Jorge Island, Chilean Antarctic territory, on Dec. 16, 2021. King George Island, located at the northern end of the white continent, is the largest of the South Shetland Islands, and serves as an entry point to Antarctica, which is why it is one of the places with the highest concentration of bases, with the presence of countries such as Chile, Russia, China, South Korea, Argentina, Uruguay, Poland, Germany, Peru, Brazil and the United States. [EPA/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/7040dffe-cf58-4ef8-8620-25ac99482721.jpg)
The coast of Fildes Bay, in Rey Jorge Island, Chilean Antarctic territory, on Dec. 16, 2021. King George Island, located at the northern end of the white continent, is the largest of the South Shetland Islands, and serves as an entry point to Antarctica, which is why it is one of the places with the highest concentration of bases, with the presence of countries such as Chile, Russia, China, South Korea, Argentina, Uruguay, Poland, Germany, Peru, Brazil and the United States. [EPA/YONHAP]
Santiago was one of the earliest destinations included in BTS global tours, when the boy band performed in the Chilean capital in 2015. How palpable would you say K-pop fever is in Chile today?
Since I have been posted to Korea, I have had many family friends in Chile, many of them K-pop fans, contact me to give me instructions on how I should behave in Korea, what I should eat, how I should react or respond in certain circumstances, how to approach people here, where I should go, and so on. I think I learned more from them than from guidebooks about Korea. Korean culture has permeated our society and the world.
What’s the make-up of the Korean population in Chile and Chileans in Korea today?
The Korean population based in Chile is nearly 2,500 persons, due to a migration process that started in the ‘70s. Most of them settled in Patronato, a multicultural neighborhood of Recoleta in downtown Santiago that they share with an important Palestinian community. They have prospered in the textile industry, founding new stores and bringing high quality Korean products.
Koreans came to Chile as first movers after our country opened its economy in an early stage of the internationalization of Chile. The second generation of Koreans in Chile are fully integrated in the Chilean society — they study in our universities and have become professionals, including executives of companies, teachers, lawyers and even influencers.
Korea is home to around 260 Chilean residents, most of them based in Seoul, but, as we usually say in our country, “in every place you can find a Chilean.” Some of them are living in Jeju, Ulsan and Busan, among other cities. In terms of sectors where they deploy their talents, most of them are postgraduate students in the fields of science, technology and innovation, as well as the Korean language.
We also have Spanish and English teachers from Chile, working in international schools, as well as Chilean businesspersons representing their companies in this country, particularly in the food and wine sector. Additionally, thanks to our Bilateral Working Holiday Visa Agreement, 100 Chileans can experience Korea for a whole year to work and enjoy the culture, while 100 young Koreans are also able to visit Chile for the same purposes.
Koreans came to Chile as first movers after our country opened its economy in an early stage of the internationalization of Chile. The second generation of Koreans in Chile are fully integrated in the Chilean society — they study in our universities and have become professionals, including executives of companies, teachers, lawyers and even influencers.
Korea is home to around 260 Chilean residents, most of them based in Seoul, but, as we usually say in our country, “in every place you can find a Chilean.” Some of them are living in Jeju, Ulsan and Busan, among other cities. In terms of sectors where they deploy their talents, most of them are postgraduate students in the fields of science, technology and innovation, as well as the Korean language.
We also have Spanish and English teachers from Chile, working in international schools, as well as Chilean businesspersons representing their companies in this country, particularly in the food and wine sector. Additionally, thanks to our Bilateral Working Holiday Visa Agreement, 100 Chileans can experience Korea for a whole year to work and enjoy the culture, while 100 young Koreans are also able to visit Chile for the same purposes.
![[EMBASSY OF CHILE IN SEOUL]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/c4a4a936-5aaf-4632-8020-019faeb5f958.jpg)
[EMBASSY OF CHILE IN SEOUL]
60 years of Chile-Korea relations
1962 Establishment of ties
Chile and Korea established ties in April 1962. The opening of the Korean Embassy in Santiago followed in 1966 and the Chilean Embassy in Seoul in 1969. In the early years of their relations, several Korean households immigrated to Chile to work on flower farms and in the textile industry.
1994 President Montalva in Korea
President Montalva Eduardo Frei became the first president in Latin America to pay an official visit to Korea when he did so in November 1994. His visit was followed by President Kim Young-sam to Chile in 1996, marking the first state visit to Chile by a Korean president.
Chile's President Montalva Eduardo Frei, far left, meets with Lee Kung-hee, at the time the chairman of Samsung Group, far right, at the Shilla Hotel in central Seoul on Nov. 22, 1994. [JOONGANG PHOTO]
Chile and Korea signed their free trade agreement on Feb. 15 in 2003, marking the first for Korea with any nation and the first FTA between Chile and an Asian nation. Chile’s President Ricardo Lagos came to Seoul to oversee the signing of the agreement.
![Chile’s President Ricardo Lagos and Korea's President Kim Dae-jung oversee the signing of the free trade agreement between Chile and Korea in Seoul on Feb. 15, 2003. [JOONGANG PHOTO]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/56ea18db-6e43-40e9-8ac1-ac72519fe8c6.jpg)
Chile’s President Ricardo Lagos and Korea's President Kim Dae-jung oversee the signing of the free trade agreement between Chile and Korea in Seoul on Feb. 15, 2003. [JOONGANG PHOTO]
2004 President Roh in Chile
President Roh Moo-hyun visited Chile both for the state visit and the participation in the Asia-Pacific Economic Cooperation (APEC) meeting in November 2004. Chile and Korea officially named their relationship a “comprehensive and cooperative” partnership during Roh’s state visit. The visit was followed the next year by President Lagos to Korea when he took part in the APEC Summit Busan.
![President Roh Moo-hyun, left, with Chile's President Lagos at the joint press conference they hosted in Santiago on Nov. 20, 2004. [JOONGANG PHOTO]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/13146c6f-49dd-4e0e-81c2-634f10f1c52d.jpg)
President Roh Moo-hyun, left, with Chile's President Lagos at the joint press conference they hosted in Santiago on Nov. 20, 2004. [JOONGANG PHOTO]
The Dabotap pagoda was gifted from Korea to Chile to 2010 in celebration of the 200th anniversary of Chile’s independence, and has been standing at a riverside park in Santiago ever since.
The following year, Chile and Korea held their fifth high-level policy consultation in Santiago in June. The consultations, held through the years, were put on stop during the pandemic, with the last being held in Seoul in 2019.
2012 Antarctic cooperation & state visits
Korea and Chile signed an agreement to cooperate in the Antarctic region in 2012, and since 2016 have been holding high-level consultations on the topic. Chile is one of the 12 countries to sign the Antarctic Treaty in 1959 and has been supportive of Korea’s contribution to the science and research in the South Pole, as it opened the King Sejong Station in 1988.
Presidential visits in the following years included the visit of President Sebastián Piñera to Korea in 2012, visit of President Lee Myung-bak to Chile in the same year, and visit of President Park to Chile in 2015.
![A cooperative center on Antarctic research between Chile and Korea holds an opening reception at the center in Punta Arenas, Chile, on Feb. 26, 2016. [EMBASSY OF KOREA IN CHILE]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/1225d758-ea45-4948-abfc-c7d66bda98d5.jpg)
A cooperative center on Antarctic research between Chile and Korea holds an opening reception at the center in Punta Arenas, Chile, on Feb. 26, 2016. [EMBASSY OF KOREA IN CHILE]
One of the earlier global tour destinations for K-pop sensation BTS was Santiago, when they performed in the Chilean capital in 2015. The boyband’s fan base worldwide had grown exponentially when it returned for another concert in Santiago in March 2017.
![BTS performing in Latin America in March 2017, as part of their "2017 BTS Live Trilogy Episode III The Wings Tour." [BIG HIT ENTERTAINMENT/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2022/09/24/6415cdc0-591a-45a0-8688-4b8bc490651f.jpg)
BTS performing in Latin America in March 2017, as part of their "2017 BTS Live Trilogy Episode III The Wings Tour." [BIG HIT ENTERTAINMENT/YONHAP]
Chilean Ministry of Energy and the Korean Ministry of Trade, Industry and Energy signed an agreement on cooperation on green hydrogen, during a visit by Rodrigo Yanez, vice trade minister of Chile to Seoul in July 2021. In May 2022, a Chilean Hydrogen Association delegation paid a visit to Korea to participate in the Global Hydrogen Industrial Association Alliance.
2022 60th anniversary
As part of the 60th anniversary celebrations, the Chilean Embassy in Seoul hosted in April a special webinar on Chile-Korea relations with experts from both nations on the fields of politics, culture and science and technology. The complete works of the two Chilean Nobel prize poets, Gabriela Mistral and Pablo Neruda, were also gifted by the embassy to several Korean educational institutions.
A screening of Chilean animi nation “Nahuel and the Magic Book,” which incorporates aspects of Chilean southern mythology and indigenous beliefs, was organized by the embassy and the Korea Foundation in August.
On Sept. 26 at the National Library for Children and Young Adults in Seoul there will be an opening ceremony for the exhibition “Encounter of Three Worlds,” organized by the embassy and the library, on the 500th anniversary of the Ferdinand Magellan’s first global voyage (1519-1522), an adventure deeply linked to Chile, because the Strait of Magellan in southern Chile made possible mankind’s first known circumnavigation of the planet.
BY ESTHER CHUNG [chung.juhee@joongang.co.kr]
with the Korea JoongAng Daily
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