Cebu is not only known as a “honeymoon” destination for Koreans, but it has also gained popularity as an investment hub among Korean investors.
This is the observation gathered by Cebuano businessmen who recently went to South Korea for a trade mission led by Chito M. Recamadas.
In an interview with Recamadas, he said that a growing number of Korean capitalists are now looking at Cebu as an investment site for real estate, mostly on resort, commercial and residential (condominium) developments.
However, with the problem of ownership rules provided for by the Philippine law, wherein foreign entities can not own majority share of any business operation, Recamadas said interested Korean investors are also looking at forging partnership with Cebuano businessmen.
“They [Korean businessmen] want to invest in residential, commercial and resort projects in Cebu, but the problem is out law in ownership,” Recamadas said.
Recamadas, who is the manager for Central and Eastern Visayas regions for IntelliCare, a healthcare company, said that aside from investment interest, Koreans are also interested in partnering with companies here, especially in providing health insurance protection to Korean nationals visiting Cebu, or taking their studies here.
He said with the 15,000 Koreans who are now temporarily residing in Cebu, mostly taking up English and Secondary Language (ESL) studies, there is a need to provide them with healthcare protection, in partnership with a Korean-based entity.
According to Recamadas, the Korean investment community is bullish about Cebu, and interest for investment here is strong, especially in setting up retirement homes, wellness facilities, resorts, condominiums, among others.
A group of Cebuano businessmen was in South Korean last April 21 to 24 (2008) to pursue a Study Tour and Trade Mission activities, and linked up with Korean investors to further promote Cebu to the Korean nationals, not only as a tourism destination, but also a trading and investment hub.
Recamadas said the group met with Korean Import Association, Korean Trade Association, and Korean Chamber of Commerce. Part of the activities during the four-day mission was one-on-one business matching between Cebuano and Korean traders.
There is also a growing interest of Korean businessmen in agricultural and marine products in Cebu, making Korea part of the emerging markets for processed food exports, he said.
In an earlier interview with Consul of Korea to Cebu Augusto Go, he said that it is important for Cebu to start up a good relationship with trade and commerce players in Korea, as the country is seen to be a good market for Cebu, especially for condominium products.
Koreans, who are the top one market of tourism in Cebu, as well as in other parts of the Philippines, are also a good market for condo units, Go said.
In fact, most Koreans who are residing here for educational purposes are currently the largest tenants of condominiums and apartments here.
Already, Korean investors have started to invest in condominium and resort projects in Cebu, to take advantage of the high interest of Koreans to travel in tropical areas like Cebu.