A powerful agreement between South Korean President Lee Jae-Myung and Italian Prime Minister Giorgina Meloni was signed in Seoul, and it is geared towards a major growth in the spheres of artificial intelligence, semiconductor technology, and critical mineral resources.
This could be described as a historic agreement that will see two technologically savvy countries face global supply-chain vulnerabilities on a direct level.
Summit Highlights
The leaders signed a major memorandum of understanding regarding chip cooperation that focuses on artificial-intelligence applications in which South Korea is ranked the second-largest producer of semiconductor in the global arena.
They also made a promise to collaborate in ensuring the resilience of critical-mineral supply networks, which is of increased priority in view of the increased utilization of batteries and electronic equipment.
The partnership is further extended to the aerospace sector, research and exchange, tourism, culture and denuclearizing the Korean peninsula.
Trade Power Boost
The two leaders are anticipated to sign a number of agreements following the discussions. South Korea is Italy’s top Asian export destination per capita and its fourth-largest trading partner in Asia.
The volume of trade between South Korea and the EU has increased steadily since the free trade agreement went into effect in 2012, rising from $8.08 billion in 2012 to $12.6 billion in 2024.
The Korea Semiconductor Device Market is expected to grow at a compound annual growth rate (CAGR) of 6.92% from 2025 to 2033, from $21.45 billion in 2024 to $39.17 billion.
Strong global demand for memory chips, higher investments in AI and 5G technologies, and government support for semiconductor innovation to preserve Korea’s advantage in manufacturing and exporting cutting-edge chips are the main drivers of this growth.
Strategic Edge
It is the first Italian visit in 19 years showing the importance of diversified technology alliances. The memorandum of understanding is going to form the basis of the next-generation relationship which has been felt by similar treaties with South Korean conglomerates like Samsung seeking European design expertise.
Meloni, who is on a mid-Asian tour which has visited Japan and Oman, proposed a return visit by President Lee to Italy later in the year.
Future Outlook
Analysts expect that such a partnership will bring the semiconductor components and equipment company an increase with billions of euros in annual artificial-intelligence chips sales achieved through this team effort.
This partnership projects expected great achievements in the development of artificial intelligence chips and the ability to establish sustainable mineral supply chains thus enhancing an effective Euro Asian technology alliance amid the global geopolitical frictions.