Mexico–South Korea: Six Decades of Trade, Investment, Tech

The relationship between Mexico and South Korea has deep historical roots, dating back to 1905 when 1,033 Korean migrants arrived in Mexico. While formal diplomatic relations were established in 1962, the bond between both nations has since evolved into a robust partnership spanning politics, economics, and culture.

According to the South Korean Embassy in Mexico, strengthening institutional frameworks and expanding substantive cooperation in trade and investment remain top priorities. 

In 2024, bilateral trade reached significant volumes, though with a marked trade deficit for Mexico. Exports from Mexico to South Korea amounted to US$6.16 billion, 1% of Mexico’s total exports. The main products were piston, rotary, or reciprocating engines, worth US$686 million. Leading exporting states were Mexico City (US$1.29 billion), Sonora (US$385 million), and Nuevo Leon (US$157 million).

Imports from South Korea to Mexico amounted to US$23 billion, 3.62% of Mexico’s total imports. The main products were machine parts and accessories worth US$2.53 billion. Main importing states: Chihuahua (US$5.56 billion), Nuevo Leon (US$4.92 billion), and Baja California (US$2.35 billion).

The net trade balance in 2024 stood at a negative US$16.8 billion for Mexico. Despite this, certain states like Mexico City, Sonora, and Morelos maintained positive bilateral balances.

South Korea’s Expanding Footprint in Mexico

From January to December 2024, South Korea invested US$1.31 billion in Mexico, mainly through reinvestment of earnings (US$861 million) and inter-company debt (US$442 million). Historically, from 1999 to 2024, total South Korean FDI in Mexico reached US$11.8 billion. The top recipients in 2024 were Nuevo Leon (US$626 million), Mexico City (US$132 million), and Baja California (US$125 million).

According to the Academy of Korean Studies, over 1,900 South Korean companies operate in Mexico, including industry leaders like Samsung, LG, Hyundai, Kia, and Daewoo, with operations in Monterrey, Puebla, Tijuana, Guadalajara, Queretaro, Tampico, and Celaya.

At the start of 2025, LG announced a US$100 million investment to double production at its Reynosa plant, reaching 6.5 million OLED televisions annually for domestic and export markets. In May 2025, Kia Motors committed US$150 million to expand its Pesqueria, Nuevo Leon plant, aiming for a production capacity of 280,000 vehicles in 2025, with 60% of K4 model units destined for export to 66 countries.

South Korea is also collaborating with Mexico to advance smart city projects. The Roadshow for Smart Cities and Digital Government, held in March 2025 by KOTRA, brought South Korean tech firms to explore digital infrastructure opportunities in Mexico. With 80% internet penetration and ranking sixth in the Global Innovation Index, South Korea offers valuable expertise for Mexico, the second-largest smart city market in Latin America.

In 2024, Mexico’s Ministry of Foreign Affairs deepened engagement with South Korea during the 14th Forum for East Asia–Latin America Cooperation (FEALAC). Discussions focused on aligning initiatives with the UN 2030 Agenda and boosting trade and investment ties.

South Korea ranks as Mexico’s fifth-largest global trading partner and second in Asia-Pacific, underlining the strategic relevance of this partnership.

South Korea’s Economic Context

With a population of 51.75 million and GDP of US$1.71 trillion (2023), South Korea is an industrial powerhouse, with industry accounting for 31.6% of GDP. In 2024, semiconductor exports hit a record US$141.9 billion, exports of automobiles were retained at US$70.8 billion, shipbuilding rose 18% (US$25.6 billion), and bio-health exports climbed 13.1% (US$15.1 billion).

According to Lloyd Bank, the service sector represents 58.4% of GDP, led by tourism and financial services, while agriculture contributes just 1.6%, with rice as its main crop. With the growing popularity of K-food and K-beauty products worldwide, the export of both agriculture, fishery, and livestock products (up 7.6% to US$11.7 billion in 2024) and cosmetic products (up 20.6% to US$10.2 billion) entered the US$10 billion thresholds for the first time.