LH to Promote Korea-Style Smart City Development Project, the First in the Philippines

MOU Signed for Development Cooperation between Philippine Clark Development Corporation and Clark Smart City
Creation of a 320,000-pyeong City within Clark Freeport Zone, Mabalacat City, Philippines
Establishing a Base for Korean Companies' Entry into the Philippines, Expecting Active Business and Overseas Expansion

Location map of the Clark Smart City development project in the Philippines.

[Asia Economy Reporter Kangwook Cho] Korea Land and Housing Corporation (LH) announced on the 15th that it has signed a Memorandum of Understanding (MOU) for development cooperation with the Clark Development Corporation (CDC) of the Philippines to promote a smart city project within the Clark Freeport Zone in Mabalacat City, Pampanga Province, Philippines.

The "Philippine Clark Smart City Development Project" is LH's first project in the Philippines. It is a G2G project currently undergoing feasibility studies after being selected last year for support under the K-City Network program by the Ministry of Land, Infrastructure and Transport and the Korea Overseas Infrastructure & Urban Development Corporation. Through this project, a smart city covering an area of 1,047,000㎡ (320,000 pyeong) will be developed within the Clark Freeport Zone in the Clark Special Economic Zone, located about 80 km northwest of the capital Manila. CDC, the signing institution, is a Philippine state-owned enterprise holding development and investment attraction rights for the Clark Special Economic Zone.

Mabalacat City in Pampanga Province has a population of approximately 300,000, and the Clark Freeport Zone, a flagship project of the Philippine government's core infrastructure revitalization policy, is being established there. The Clark Freeport Zone is a Philippine economic zone expected to develop tourism and manufacturing industries. The zone plans to attract companies mainly in manufacturing focused on electronic components and machinery equipment, aircraft maintenance, and service-related sectors. In particular, there are tax incentives such as VAT and customs duty exemptions, attracting strong interest from global companies. Clark International Airport is located just 10 minutes east of the project site, and transportation infrastructure is excellent with the construction of a freight railway between Clark and Subic Port and a north-south commuter railway connecting Manila and Clark.

Through this MOU, the two organizations agreed to actively collaborate to promote the development project by sharing policies and experiences related to smart city development.

LH plans to provide smart services to enhance safety, security, and tourism competitiveness, developing Clark Smart City as a logistics hub city linked with Clark International Airport, a MICE (Meetings, Incentives, Conferences, and Exhibitions) and tourism and leisure city, and an aviation maintenance industrial city. Once the ongoing feasibility study is completed, the Clark Smart City development project will be actively pursued. LH expects that the Clark Smart City development project, incorporating Korea's smart city technology, will not only facilitate active entry of domestic companies into the Philippines but also promote economic cooperation between Korea and the Philippines.

Kim Hyun-jun, President of LH, said, "I hope to expand cooperation between the two countries through various projects, not only smart city development projects, and further enhance exchanges with the Philippines."

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