SOUTH Korea aims to strengthen its cooperation with the Philippines to partner with the Duterte administration’s infrastructure projects, as well as to boost the bilateral trade between the two nations.
In a news conference, Philippine Ambassador to South Korea Raul S. Hernandez said there are huge opportunities for Korean companies in the country, especially at this time when the government focuses on its “Build, Build, Build” program.
Hernandez said the Philippine government is aggressive on its mission to inform Korean firms on their potentials in investing in the country, as massive infrastructure projects are in the pipeline.
“We are trying to make sure Koreans will be able to participate in this infrastructure bonanza,” the Philippine envoy noted.
Asean-Korea Center (AKC) Secretary-General Kim Youn-sun said that the South Korean delegation visiting the Philippines went to Clark in late-January, looking at opportunities in Clark Freeport Zone, particularly the New Clark City project of the Bases Conversion and Development Authority.
Kim added that South Korean President Moon Jae-in has been pushing for the “New Southern Policy,” which aims to strengthen Korea’s relations with Southeast Asian countries, including the Philippines.
He noted that South Korea coined a new term for “VIP,” which stands for Vietnam, Indonesia and the Philippines, as countries that could offer huge potential for the East Asian nation.
The AKC official said Moon’s new policy also emphasized infrastructure projects in areas of transportation, energy, information and communications technology as well as water management, among others.
Kim went on to say that South Korea and the Philippines could cooperate on value-adding industries and digital economy.
“To upgrade our partnership, we need to focus on value-added industries like advanced technology and industries,” he claimed.
Aside from infrastructure, South Korean firms can also look into investment opportunities here in the shipbuilding, automotive and electronics manufacturing, food production and processing, banking and finance sectors as well as other labor-intensive industries like shoemaking, jewelry and garments production.
Hernandez said the Philippines aims to increase its exports to the South Korean market to balance trade between the two countries. Data from the Philippine Statistics Authority (PSA) showed the country has a trade deficit of $720.85 million to its neighbor to the north.
“Philippine products that we are now targeting to promote in Korea, aside from food products and agricultural products are design-driven products, such as garments, furnishing and holiday décors, electronic components, software and games, language courses, education services and tourism retirement,” the country’s envoy to Korea cited.
Meanwhile, 12 South Korea-based companies were in the Philippines on January 30 for investment and market-research missions.
The AKC, International Contractors Association of Korea and Asia Center of Seoul National University accompanied them, with Kim leading the delegation.
The business mission was set to hold an investment forum, with the Board of Investments scheduled to present opportunities for Korean companies in the Philippine market, particularly attracting them to participate in the administration’s “Build, Build, Build” program.
Korean companies in the business mission included Seohyun Energy, CNNET Co. Ltd., Aju Corp., Ye Won Co., GS E&C, Pyunghwa Engineering Consultants Ltd., K-Water, Daelim E&C, Soosung Engineering Co. Ltd., CJ Human Tech Co. Ltd., Kepco Philippines Corp. and Hanjin Heavy Industries and Construction.
For the first nine months of 2017, approved investments from South Korean companies amounted to P1.82 billion.
South Korea is the country’s fourth-largest trading partner from January to November last year.
According to the PSA, bilateral trade reached $1.09 billion, with imports amounting to $907.45 million and exports valued at $186.59 million.
Image credits: Kris Crismundo/PNA