The Department of Finance (DOF) has reaffirmed the Philippine government’s commitment to its deeper economic ties with South Korea, which recently bared plans to expand its assistance to countries in the Asean region.
In a meeting held recently with officials of the Korea International Cooperation Agency (Koica), Finance Secretary Carlos G. Dominguez III also thanked Seoul’s support in the Philippines’s efforts to enhance the use of digital technology in improving tax administration.
“We want to express how appreciative we are of the assistance we are receiving from the Korean people through the Korean government. I hope that we can expand our cooperation at this time and for the coming future,” Dominguez told the South Korean delegation led by Koica President Lee Mikyung.
In February 2019, the Bureau of Internal Revenue (BIR) said that the Philippines is eyeing a $7.3-million grant from Koica for the implementation of the first phase of the proposed electronic invoicing (e-invoicing) system project under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Lee pointed out that South Korea expects “closer and deepened cooperation” with the Philippines, especially as this year marks the 70th anniversary of the diplomatic relations between the two countries.
In light of South Korean President Moon Jae-in’s policy centered on “the three Ps—people, peace and prosperity,” and his recognition of the strategic importance of Asean in the global economy, Lee said his government has pursued several initiatives in education, information and communications technology (ICT), and inclusive development, among other programs, that the Philippines could tap to help achieve its goal of economic inclusion for all Filipinos.
These include the Asean Higher Education Initiative, which involves the exchange of college students between South Korea and the Philippines, and South Korea’s highly developed ICT programs to assist the Philippines in enhancing transparency in governance and reforming its tax system.
“With the new set of policies presented by the Korean government, our volume of assistance to Asean countries will be increased by 2.8 times in 2022, compared to that of 2017. That means the volume of assistance to the Philippines will be naturally increased,” Lee said.
Lee also cited South Korea’s assistance to the government’s peace and development efforts in Mindanao, which include humanitarian assistance coursed through the United Nations International Children’s Emergency Fund (Unicef), Food and Agriculture Organization (FAO), and the International Organization for Migration (IOM).
Dominguez thanked Lee for outlining the South Korean government’s policies and programs, which, he said, the Philippines supports by investing heavily in human capital development, especially in education, training and improving the quality of the Philippines’s work force.
Also at the meeting were South Korean Ambassador to the Philippines Han Dongman; Kim Junmo, director, Southeast Asia Department II, Koica; Kim Gyungah, manager, Southeast Asia Department II, Koica; Lee Seungchul, program officer, Office of the President, Koica; Shin Myung Seop, Country Director, Koica Philippines; Lee Sangback, deputy country director, Koica Philippines; Francis Afable, program manager, Koica Philippines; and Shin Wookjin, program officer, Koica Philippines.
The Philippine officials at the meeting included Finance Undersecretary Mark Dennis Y.C. Joven, Foreign Affairs Assistant Secretary Meynardo LB. Montealegre, and National Economic and Development Authority (Neda) Assistant Secretary Roderick M. Planta.
Earlier this month, lawyer Anthony A. Abad of Abad Alcantara and Associates said Manila has to expand its shipments to Seoul if it intends to reduce, if not erase, its trade deficit. To do so, he advised the government to focus on exporting nonfood products and services to the East Asian country.
He explained that the government needs to focus on exporting nonfood goods and services—and not rely heavily on a bilateral free-trade agreement (FTA)—if it wants to reduce the country’s trade deficit with South Korea.