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Chile is making progress in updating the trade agreement with South Korea, with digital trade being a central point of the deal

September 1, 2020

Undersecretary of State for International Economic Relations of Chile, Rodrigo Yáñez, met with Trade Minister Yoo Myung-Hee in Seoul, South Korea to advance bilateral economic and trade ties between the two countries and create a more immersive relationship of technology, as the Constitutional newspaper this August 31st on their website.

In the instance Chile expressed its interest in improving and developing the negotiations to modernize the free trade agreement (in force since 2004).who have been going on since 2018, in search of better economic opportunities for the country to reactivate a market hard hit by the pandemic.

On the other hand, The Chilean authority held talks with Jang Seokyoung, representative of the Ministry of Science and ICT, to discuss the implementation of 5G mobile technology and artificial intelligence (AI). since then, the Asian country has been a pioneer in this matter. Points that will help promote the so-called fourth industrial revolution that these two countries want to lead.

Chile is making progress in updating the trade agreement with South Korea, with digital trade being a central point of the dealChile is making progress in updating the trade agreement with South Korea, with digital trade being a central point of the deal

The Diario Constitución also stressed that by updating the treaty signed with South Korea, which sets prices for the import and export of goods between the two countries, Chile will be able to expand its trade even further. Improving the opportunities for the national labor market and optimizing especially the sectors linked to new technologies.

According to the publication, digital commerce will be key in getting the South American region to expand its offerings and diversify its markets to other countries.

Chile and South Korea are expanding their connections to the world

The modernization of the contract is just a first step for the South American country to achieve its goals, including expanding the Chilean market and offering a wide variety of products based on digital commerce. Given this panorama, Yánez points out that:

“The diversification of our target markets as well as the expansion of our exportable offerings with a focus on services and digital commerce will help make our trade more resilient and contribute to our future economic recovery,” added the Chilean authority.

Yáñez also held talks with Deputy Foreign Minister Lee Taeho, during which they discussed bilateral and cooperative relationships as well as global economic affairs and exchanged experiences about the measures taken in both governments to treat Covid-19.

Undersecretary of State Rodrigo Yáñez also emphasized that South Korea is Chile’s fifth trading partner after China and Japan and the third in Asia. South Korea is the Asian country that currently leads the world economic market. With a wide participation in technological development, such as the blockchain to ensure the secure transfer and registration of intellectual property, and the introduction of artificial intelligence (AI), which allows a more direct relationship with technology, which has great benefits for the economic development of the Country that makes bilateral relations between the two regions more attractive.

An example of this technological advancement in the blockchain in South Korea is the utility company Korea Electrick Power Exchange (KPX), which was the first public entity in the Asian country to introduce a system for evaluating proposals based on the blockchain step towards this type of technology for its administrative processes.

Chile is targeting disruptive solutions with blockchain

Chile is a Latin American country that has integrated blockchain technology into various economic sectors in the country, mainly in the health and education sectors.

A report from Cointelegraph last month mentioned the development of Chilean talent at the hackathon for technological solutions to counter the effects of COVID-19 in the region, where the technological proposals for logistics and monitoring of the health sector.

Another sector currently supported by this technology is the Chilean energy sector. The National Energy Commission (CNE) uses blockchain technology with the aim of increasing the level of security, integrity, traceability and trust of the public information available and increasing the standards that confirm the quality and security of the data published to and from the energy sector Country.

With that in mind, Chile has developed several local solutions, many of which go beyond industries outside of the financial sector. Among them are some startups that stand out for their disruptive solutions with blockchain, including the following: CryptoMarket, Buda.com, Zawadi, Orionx, Mifutu.ro and others, this latest startup is part of the organizational team of the largest blockchain event in Latin America, such as the Blockchain Summit Latam.

Another of Chile’s influence in Latin America is the Transoceanic Cable Project, the first initiative to enable the region to connect with Oceania and eventually Asia. The submarine cable will connect Chile with New Zealand and Australia.

According to experts, the importance of this decision is that Chile becomes a gateway for 5G technology and artificial intelligence at the same time as it connects with the Asia-Pacific region. According to the Ministry of Transport, the project is at the beginning of the third phase: the engineering study. Then the business case of the selected route will be delivered to all organizations that have shown interest.

In Latin America, countries like Paraguay and Bolivia would also join the project, and Argentina has shown great interest in it.

The use of these disruptive technologies opens tremendous opportunities for Chile to become the digital center of South America on the Pacific side and is becoming an attraction for various investments such as data centers and those related to digital commerce.

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