Bolstering Brazil’s economic ties with Korea

Márcio Elias Rosa
The author is Vice-minister of Development, Industry, Commerce and Services in Brazil.

Brazil and Korea maintain a multifaceted relationship which includes numerous cultural, diplomatic and economic aspects. The partnership reached an important milestone this year: we celebrated 60 years of Korean immigration to Brazil. There are now more than 50 thousand Koreans living in Brazil, and more than 120 Korean companies are already established in our country. Brazil is Korea’s largest investment destination in Latin America.

It is in this context that the Brazilian Ministry of Development, Industry, Commerce and Services (MDIC) has dedicated itself to strengthening dialogue with Korea.

When analyzing trade and investment flows between the two countries, we can clearly see the importance of this bilateral relationship and its enormous potential for further development. Korea is Brazil’s 11th largest export destination, while Brazil is the 23rd largest target of Korean exports.

There is still room for Brazilian and Korean industries to explore mutually beneficial opportunities. Brazil exports mainly commodities, such as oil, corn, soybeans and iron ore, as well as chicken meat, to Korea. We import a variety of goods from the automotive, electronics, machinery and equipment sectors. We are, however, producers and suppliers of industrial goods for Latin America. There is, without a doubt, potential for greater productive integration between industries in Brazil and Korea. This relationship can and should be improved.

MDIC will hold meetings with Korean government institutions and innovative industries to this end. We are tasked with reinforcing our conviction: At a time when our environmental, social and economic sustainability agendas converge like never before, strengthened cooperation and dialogue between our governments and private sectors has the potential to elevate our partnership to new heights, bringing mutual benefits to our societies.

We will discuss a wide and promising range of topics this week: bioeconomy, energy transition, high-technology products such as semiconductors, biopharmaceuticals and cosmetics, among others.

Brazil has the greatest biological diversity on the planet according to the United Nations, with 15 to 20 percent of all animal and plant species living within our borders. Furthermore, we have the cleanest electrical energy mix in the world: 88 percent of our total consumption comes from renewable sources.

Brazil has unmatched potential to produce biofuels, green hydrogen, wind and solar energy. Our country has also carried out structural reforms, including taxation, and the economy is expected to grow at least 3% in 2023. Inflation is under control and interest rates are decreasing. The business environment is therefore very favorable.

We are certain that Brazil and Korea have much to cooperate and advance together in, especially in industrial technology and in research and development (R&D).

A strong and mutually beneficial economic partnership will undoubtedly be a significant step towards neo-industrialization.

That is the reason why I have visited Korea.