South Korea and Mexico revise investment treaty
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South Korea and Mexico concluded seven years of negotiations to revise their investment protection treaty on September 23.
The governments updated the 2002 agreement to reflect changes in the international investment landscape. The revised treaty clarifies the regulatory authority of the host country for investments while strengthening protections for investors, including the recovery of funds and compensation for losses. The new agreement includes provisions that safeguard investors’ rights regarding fund repatriation and loss compensation.
It also improves the dispute resolution process by adding measures to prevent frivolous lawsuits from shell companies. Additionally, the treaty guarantees the transfer of investment funds even during financial crises and establishes a process for investors to seek redress from excessive tax measures. Mexico is South Korea’s largest trading and investment partner in Central America, with numerous Korean companies operating there.
South Korean officials state that finalizing the revised treaty will strengthen the legal foundation for investment protection between the two countries.
