Philippines, South Korea reaffirm economic cooperation

MANILA, Philippines — The Philippines and South Korea reaffirmed their interest to work together in facilitating cooperation centered on research and development, renewable energy, and green technology, according to the Department of Trade and Industry (DTI).

Trade Secretary Alfredo Pascual met with South Korea Trade, Industry, and Energy Minister Duk-Geun Ahn on the sidelines of the APEC Ministerial Meeting in Bangkok, Thailand.

“The two ministers had a productive discussion on trade and investment issues, which is aimed to strengthen the bilateral relationship of the Philippines and South Korea,” the DTI said.

According to the DTI, both countries agreed to facilitate cooperation centered on research and development, renewable energy, and green technology.

The trade department said both ministers expressed a positive outlook toward the signing of the Free Trade Agreement between the Philippines and South Korea and the forthcoming visit of President Marcos  in South Korea in the first quarter of 2023.

Earlier, the Philippines and South Korea have agreed to further develop supply chain and energy cooperation during the second meeting of the Joint Commission on Trade and Economic Cooperation (JCTEC) in October.

On supply chains, the DTI said both countries agreed to maximize areas for complementation in green metals and related industries such as electric vehicles and semiconductors, focusing on building stable and sustainable supply chains for critical raw materials for production and manufacturing.

“We are positioning the Philippines as a key player in the supply of critical minerals given our vast resources of green metals such as nickel, cobalt, and copper – inputs for the production and manufacture of electronic goods and batteries for electric vehicles. With Korea’s manufacturing capabilities especially in electronics, we hope to pursue a meaningful partnership in this area,” Trade Undersecretary Ceferino Rodolfo said earlier.

South Korea Deputy Minister Dae-jin Jeong of the Ministry of Trade, Industry and Energy (MOTIE) enjoined both countries to work together to pursue the said endeavor.

“We will engage in technical discussions to pursue our strategic partnership through the proposed memorandum of understanding (MOU) on core raw materials and critical supply chain cooperation. The Philippines ranks 10th worldwide in terms of mineral production and is especially rich in nickel, chromium, and copper,” Jeong said during the JCTEC meeting.

In terms of energy cooperation, the two countries committed to establish a cooperation-based mechanism on renewable energy, energy efficiency, and nuclear power, aligned with the need to respond to climate change challenges amidst ongoing global initiatives towards carbon neutrality.

During the meeting, the two countries acknowledged the continuing efforts of both sides in enhancing market access of key products, including the signing of the Philippines-South Korea Free Trade Agreement (PH-KR FTA) targeted in 2023.

Activities to promote the utilization of the FTA through seminars and information sessions were also discussed, according to the DTI.

In support of industrial initiatives, the two nations also agreed to maintain active engagement on ongoing official development assistance (ODA) projects and to explore other areas for complementation such as collaboration related to the Philippines’ PUV modernization program.

Likewise, the importance of regional mechanisms in building towards mutual economic gains, among which is the Indo-Pacific Economic Framework for Prosperity (IPEF) was highlighted during the meeting.

Last September, the Philippines and South Korea joined other IPEF partners in endorsing the statements for the four pillars on trade, supply chains, clean economy, and fair economy.