After the summit between Javier Milei and Lee Jae-myung, the South Korean market reopens to Argentine crude after almost 17 years. The refiner HD Hyundai Oilbank has already made a test purchase of 880,000 barrels of crude
The confidence of the Asian power in the government of Javier Milei is not limited to conventional energy. Libertarian pragmatism has managed to unlock millions in investments through cutting-edge institutional tools. Coinciding with the bilateral summit, the Argentine government formally approved access for the South Korean steelmaker Posco to the tax and exchange benefits of the new Large Investment Incentives Regime (RIGI).
In this way, Posco will make a gigantic investment of USD 207.9 million for the expansion of its ambitious lithium project called Sal de Oro, located in the northwest of the country.
In a world battered by geopolitical uncertainty, the president of South Korea was explicit about the value of having a serious administration in the Southern Cone.
The Argentinais moving steadily towards an era of prosperity and consolidation as a reliable strategic partner on the international stage. Thanks to the crucial meeting in July, the trade relationship has taken a quantum leap: South Korea plans to begin importing crude oil from Argentinastarting in 2027.
This decision is the direct result of the alignment and the enormous confidence inspired by the government of Javier Milei, which facilitated successful test shipments and technical trials of the national raw material by refining and petrochemical companies from the Asian power.
The presidents, Javier Milei and Lee Jae-myung
For the South Korean industry, the alliance with Argentina is a key geopolitical piece within its strategy to reduce dependence on suppliers from the Persian Gulf and expand its sources of crude supply.
The technical relevance of this agreement highlights the extraordinary energy potential of Argentina. The star of this commercial operation is Medanito crude, the high-quality light oil extracted from the depths of Vaca Muerta.
With an approximate gravity of 40.8 degrees API and an extremely low sulfur content of just 0.15%, this resource is positioned exceptionally well in the global market.
In fact, market confidence is so solid that in recent weeks, spot sales of Medanito crude have been finalized for deliveries estimated between the end of the third quarter and the beginning of the fourth quarter of 2026 to buyers from East Asia.
Although the total volume expected for imports starting in 2027 has not yet been officially detailed, the energy cooperation agreement exceeds the realm of crude oil, also contemplating the future expansion of cooperation towards natural gas and nuclear energy.
The magnitude of this commercial milestone is underscored by the fact that South Korea had not registered a single purchase of Argentine crude since October 2010, when it acquired a unique shipment of 300,000 barrels, according to official statistics from Korea National Oil Corp. (KNOC). This nearly seventeen-year void is spectacularly broken thanks to the trust placed in the current libertarian administration.
To understand the colossal market that Argentina under Milei has just conquered, it is enough to analyze the supply matrix of the Asian giant. During the first half of 2026, South Korea imported the impressive figure of 467.1 million barrels of crude.
Argentine crude oil barrels
Of that total, 291.2 million barrels corresponded to high-sulfur crudes imported from the Middle East, representing a high 62% of its trade matrix.
In contrast, all suppliers from Latin America provided only 20.5 million barrels in the same period. The entry of Vaca Muerta oil will not only reconfigure the energy security of Seoul, but will also represent a historic influx of foreign currency for Argentine coffers.
During an interview with the news agency EFE, Lee Jae-myung stated: "Mercosur countries are world leaders in agriculture, food production, energy, and critical minerals. South Korea is a world leader in advanced manufacturing, digital technologies, shipbuilding, batteries, and innovation. By combining these strengths, we can create resilient value chains that benefit both regions".
Moreover, the Asian leader linked this objective to the international urgency of overcoming protectionism and global disruptions through an alliance with "reliable partners and trade based on clear rules and mutual trust", a status of trusted partner that Argentina proudly regains in the concert of free nations under the presidency of Javier Milei.
The presidents, Javier Milei and Lee Jae-myung
With its sights set on advancing towards an ambitious free trade agreement between Mercosur and South Korea, the country consolidates its role as a beacon of economic freedom in Latin America.
The clearest reflection of this diplomatic and economic success was solidified on the morning of July 31 at the Casa Rosada, when Javier Milei received his South Korean counterpart, Lee Jae-myung, in a meeting of historical significance.
This high-level meeting represented the first visit of a South Korean leader to Argentina in 22 years, marking the end of a long diplomatic slumber.
In the formal meeting, which began at 11:00 in the presidential office after the traditional photo in the Salón Blanco and concluded with a delegation meeting in the Salón Eva Perón, the leaders laid the groundwork for an unprecedented strategic alliance.
The Argentine chancellor, Pablo Quirno, who officially welcomed Lee Jae-myung the night before, accurately summarized the magnitude of the event by defining the presidential meeting as "a historic opportunity with one of the most dynamic economies in the world to expand trade, investments, and joint projects".
