"There is an urgent need to address the long running series of deficit in Korea’s favor and expand the Philippine share of the Korean market," Trade Secretary Cesar V. Purisima said during the annual membership meeting of the Korean Chamber of Commerce Philippines Inc.
In 2003, total trade between the two Asian countries amounted to $3.7 billion.
Korean exports to the Philippines amounted to $2.4 billion while Philippine shipments to Korea were valued at only $1.3 billion.
Korea is the country’s ninth biggest export market of semiconductor components and devices, petroleum naptha, refined copper cathodes, parts and accessories of automatic data processing machines, and storage units.
In turn, the Philippines buys semi-processed and finished products from Korea, including cellular phones, semiconductor components and devices, parts and accessories of automatic data processing machines, other materials and accessories and dice of many material for manufacture of semiconductor devices.
The trade chief said that the country still has several export products with big potential to penetrate the Korean market: electronic; food products such as mangoes, bananas, pineapples; marine products like shrimps and prawns, baby clams, black tiger prawns, lobsters; dried mangoes, banana chips, canned fruits, fruit jellies, canned abalone, tilapia fillets, breaded prawns, juices and purees; gifts, toys, house ware; fashion accessories and costume jewelry.
Purisima said that Korean direct investments were in the manufacture of clothing and fashion accessories, engineering products, processed foods and beverages, toys, construction materials, sporting goods, chemicals, textile and leather, and construction materials.
Meanwhile, Korean prospective and existing investors were assured by the trade secretary of fiscal incentives comparable to global standards.
"The (trade) department will push for the passage of a bill that will grant incentives on capital equipment for export-oriented enterprises located outside economic zones and registered with the BOI," Purisima said.