Agreement opens Philippine defense contracts to more South Korean firms

BUSAN, South Korea — The Philippines and South Korea on Tuesday signed a defense cooperation deal that will give more Korean firms opportunities to bag government-to-government projects under Manila's military upgrade program.

Defense Secretary Delfin Lorenzana and his Korean counterpart Wang Chung-hong signed an amendment to a bilateral agreement on the procurement of specific defense products, according to South Korea's Defense Acquisition Program Administration (DAPA).

"The arrangement is expected to allow more South Korean companies to be able to make contracts with the Philippine government so as to promote their defense exports to the Southeast Asian country," a DAPA statement read.

The amendment to the implementation agreement, the agency said, is expected to contribute to revitalizing Seoul's defense exports to the Philippines by expanding Korean companies that can conclude government-to-government contracts.

The Philippines' military upgrade program was also discussed during the bilateral meeting between President Duterte and South Korea President Moon Jae-in last Monday here.

A statement posted on the Association of Southeast Asian Nations-Republic of Korea Commemorative Summit website said Moon asked for "interest and support" from the Filipino government in providing more opportunities to Korean companies in defense related projects.

But Lorenzana said aside from the defense assets that are already in the advanced stage of procurement, the Philippines has no immediate plan to buy additional equipment from South Korea.

"None. That's the last, the two corvettes. We do not know in the future whether we will ask them to do something for us because they are good in manufacturing (defense assets)," the Philippine defense chief said.

The Philippines is planning to spend P25 billion to buy two corvettes from Korean shipbuilder Hyundai Heavy Industries. It is also acquiring two frigates worth P16 billion from the same company.

One of the frigates, the BRP Rizal, may be delivered in May while the other vessel, the BRP Luna, is expected to arrive in December next year.

Manila also aquired 12 FA-50 jets from Seoul to strengthen its territorial defense capabilities.

Lorenzana said Duterte was supposed to shop for defense equipment here but decided not to do so due to lack of time. He said the President had considered extending his visit here by a day so he could inspect the military assets available in the market.

"But when he saw his schedule, it was not doable so he decided to leave today," Lorenzana said.