KOTRA: "Expansion of Automobile and Food Exports through Korea-Philippines FTA"

FTA between Korea and the Philippines to Take Effect on the 31st
'Report on Export Promising Products and Cooperation Opportunities'
Expectations for Smart Farm, Smart City, and Renewable Energy

With the Free Trade Agreement (FTA) between South Korea and the Philippines coming into effect on the 31st, exports to the Philippines, including automobiles and parts that will have tariffs immediately eliminated, are expected to increase.

The Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency (KOTRA) announced this on the 30th through a report titled "Promising Export Products and Cooperation Opportunities Following the Korea-Philippines FTA Implementation."

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The Philippines, with a population of approximately 120 million, was South Korea's 15th largest trading partner as of last year. It is also a representative promising export market expected to record growth rates of 5.8% this year and 6.1% next year.

The report identified internal combustion engine vehicles and trucks, which will have tariffs eliminated immediately upon implementation, as well as electric vehicles and automobile parts, which will have tariffs eliminated within five years, as promising export items. Benefiting from the Korean Wave (Hallyu), consumer goods such as stationery, processed foods, and home electronics, which receive excellent evaluations in design and quality, are also expected to see increased exports to the Philippines by securing price competitiveness due to tariff elimination.

Corporate cooperation in smart farms, smart cities, and renewable energy sectors is also anticipated. As part of the Philippines' agricultural modernization policy, the demand for technical cooperation from the Philippine government to improve crop productivity is increasing. The Philippine government has set a goal to develop three smart cities within the country as part of its infrastructure development policy. Additionally, according to the Philippine Energy Plan (PEP), the share of renewable energy generation is planned to expand from 22% last year to 35% by 2030. The issuance of projects in the renewable energy sector is also expected to increase.

Lee Ji-hyung, head of KOTRA's Economic and Trade Cooperation Division, stated, "KOTRA will actively respond to specific inquiries related to FTA utilization by Korean companies through the Manila Overseas FTA Utilization Support Center."

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