Korea, Brazil Agree to Closer Bilateral Cooperation

Korea and Brazil agreed yesterday to participate in the Financial Stability Forum, help increase the provision of liquidity, and allow emerging economies a greater voice in the restructuring of the global financial system.

President Lee Myung-bak and Brazilian President Luiz Inacio Lula da Silva in Brasilia agreed that both countries, which will moderate the next Group of 20 summit in April, should closely cooperate to prepare the policy agenda and draw up measures to restructure the international financial system.

The two leaders also agreed to cooperate in allowing Korean companies to participate in the construction of a high-speed railroad linking Rio de Janeiro and Sao Paulo, shipbuilding and plant building in Brazil.

They will also strengthen bilateral cooperation in exploring Brazil’s deep-sea oil mines and promoting the green energy industry, such as the joint development of ”flex fuel” cars running on Brazilian bioethanol.

On President Lee’s invitation, Lula will visit Korea next year to mark the 50th year of bilateral ties.

In a luncheon meeting with a Korean business delegation in Sao Paulo, President Lee said, “Businesses that challenge themselves will eventually get on the fast track for growth when the economy recovers in a year or two.”

He also urged the delegation to boost Korean corporate presence in the emerging Central and South American markets. “The strength of Korea is its can-do attitude in the market. Korean entrepreneurs should keep in mind that they should be more adventurous and expand into new markets when the economy is in a slump,” he added.

swpark@donga.com