BUSAN – President Duterte met with representatives of top South Korean companies here and assured them of protection and other privileges if they invest or expand their operations in the Philippines.
The Philippines and South Korea have also signed a defense cooperation deal aimed at giving more Korean firms the opportunity to bag government-to-government projects under Manila’s military upgrade program.
Trade Secretary Ramon Lopez said yesterday the President made the commitment on Monday to officials and representatives of Daesang, Hyundai Engineering & Construction Co. Ltd., Developer City Co. Ltd. (DCC), JS Development Corp., Korea Overseas Investment and Urban Development, LG CNS, Pan Co. Ltd., Dohwa, Dae Il Corp. and Zein Motors.
“He assured protection, ease of doing business, no delay in permits and full guarantee of their... return of investments and remittances,” Lopez told reporters.
Duterte told the Korean investors that the Philippines wants continued growth but does not have funds to sustain it. He said foreign investors could play an important role in addressing the gap.
Lopez said some businesses have expressed interest in investing in the Philippines, especially in the government’s Build Build Build infrastructure program.
“Some (companies) are existing and expanding. Others planning to come in,” the trade chief said.
The Philippines and South Korea have also agreed to work together to reach a free trade agreement by next year. The two countries cited the need to open their commodities market at an early date and vowed to cooperate to achieve substantive progress in the trade talks.
Trade volume between Manila and Seoul totaled $15.6 billion as of end-2018.
No letup
Meanwhile, 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 efforts to revitalize 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 on Monday.
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 Philippine government in providing more opportunities to Korean companies in defense-related projects.
But Lorenzana said aside from the defense assets 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 acquired 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 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 (Nov. 26),” Lorenzana said.