"Korea and the Philippines Agree to Strengthen Business 'Economic Solidarity' as a Key Pillar of Supply Chains"

Strengthening Economic Solidarity with ASEAN

First Large-Scale Business Event Since FTA Implementation

Seven MOUs Signed Between Companies of Both Countries

Business leaders from both Korea and the Philippines have agreed to strengthen economic cooperation in a broader range of areas, including critical minerals, manufacturing, culture and consumer goods, and infrastructure.

On the occasion of President Lee Jae-myung's state visit to the Philippines, the Federation of Korean Industries co-hosted the Korea-Philippines Business Forum with the Philippine Chamber of Commerce and Industry on March 4 (local time) at the Conrad Manila in downtown Manila. This forum was the first large-scale economic event held since the Korea-Philippines Free Trade Agreement (FTA) came into effect in 2024. The event aimed to explore ways to expand economic cooperation between the two countries and further strengthen economic ties with ASEAN through strategic cooperation with the Philippines, which is serving as the 2026 ASEAN chair.

The forum was attended by President Lee Jae-myung and Philippine President Ferdinand Marcos Jr., along with more than 250 participants, including business leaders and government officials from both countries. The Korean business delegation included Ryoo Jin, Chairman of the Federation of Korean Industries; Yoon Jin-sik, Chairman of the Korea International Trade Association; Sohn Kyung-shik, Chairman of the Korea Employers Federation; Kim Kimoon, Chairman of the Korea Federation of SMEs; Choi Jin-sik, Chairman of the Korea Federation of Mid-sized Enterprises; as well as major corporate leaders such as Shin Dong-bin, Chairman of Lotte Group; Jung Ki-sun, Chairman of HD Hyundai; Lee Hyung-hee, Vice Chairman of SK Group; Kim Won-kyung, President of Samsung Electronics; Sung Kim, President of Hyundai Motor Company; and Jung Dae-hwa, President of LG Electronics.

On the Philippine side, Ferdinand Ferrer, Chairman of the Philippine Chamber of Commerce and Industry; Hans Sy, Chairman of SM Prime Holdings; Kevin Andrew Tan, President of Alliance Global Group; David Chua, President of Cathay Pacific; and Bryan Lim, Vice President of Bench, were among the 100 business representatives in attendance. High-ranking government officials, including Christina Aldeguer Roque, Secretary of Trade and Industry; Henry Roel Aguda, Secretary of Information and Communications Technology; and Juan Miguel Cuna, Secretary of Environment and Natural Resources, also participated in the forum.

President Lee Jae-myung is speaking at the Korea-Philippines Business Forum held at the Conrad Hotel in Manila, Philippines, on the 4th. Photo by Yonhap News.

In his opening remarks, Ryoo Jin, Chairman of the Federation of Korean Industries, stated, "Korea and the Philippines have a closer relationship than ever before," adding, "Economic cooperation has been further strengthened through the FTA between the two countries, and the sense of closeness between our peoples has also deepened." He also highlighted the strong popularity of Korean culture in the Philippines, noting, "K-content, K-food, and K-culture have become part of daily life," and emphasized that Korean companies, as the second-largest investors in the Philippines, are moving toward realizing the 'Philippines Dream.'

Ryoo Jin further stated, "With President Marcos' 'CREATE MORE Act' and President Lee's ASEAN-centered CSP vision, cooperation in shipbuilding, energy, and advanced industries is being actively pursued." He stressed that "now is the time to elevate the bilateral partnership to the next level, focusing on future industries."

He particularly noted, "The Philippines has a strategic advantage as a hub for supply chains within ASEAN and boasts excellent human resources, while Korea holds competitiveness in semiconductors and advanced manufacturing capabilities." He asserted, "If our two countries strengthen cooperation, not only can we advance manufacturing, but we can also become a key pillar in global supply chains." He also highlighted that Korea, with its experience and technological expertise in railway, port, and airport construction, is the optimal partner for major infrastructure projects such as the Luzon Economic Corridor (LEC).

The first segment of the forum featured Angel Ignacio, Deputy Minister of Finance of the Philippines, who introduced the government's "Big Bold Reforms" policy. Marking 2026, these reforms are aimed at promoting economic development and attracting investment through regulatory innovation and growth strategies, including digital transformation, support for the automotive industry, visa policy relaxation, and simplification of environmental regulations.

In the subsequent session, business leaders from both countries discussed cooperation strategies in four industrial sectors. During the "Critical Minerals Cooperation" session, LX International presented its case of sustainable mineral development and responsible resource management, having successfully completed environmental restoration of the Rapu-Rapu copper mine. This project was the first in Philippine mining history to receive official approval for environmental restoration from the Philippine government. LX International was officially commended by Juan Miguel Cuna, Secretary of the Department of Environment and Natural Resources (DENR) of the Philippines, in recognition of this achievement.

In the "Manufacturing Cooperation" session, HD Hyundai, which operates the Subic Shipyard and participates in the Philippine Navy's modernization projects, served as the speaker. HD Hyundai introduced its business achievements based on capabilities in commercial and naval shipbuilding and MRO, and outlined its long-term vision to nurture the Philippines as a strategic hub for Indo-Pacific maritime security through phased technology transfer and expanded local production.

During the "Culture and Consumer Goods Cooperation" session, Lotte Chilsung Beverage shared its achievements in local production and distribution in the Philippines through PCPPI (Pepsi-Cola Products Philippines, Inc.) and the localization of its brands. Lotte Chilsung Beverage also announced plans to enhance its local manufacturing capacity and utilize the Philippines as an export hub to expand into other ASEAN markets.

Finally, in the "Infrastructure Cooperation" session, Korea Water Resources Corporation proposed an integrated, climate-responsive water resources management model based on its experience with infrastructure projects such as the Angat multipurpose dam for hydropower and water supply in the Philippines. The proposal included AI-based water purification plants, smart water management, and seawater desalination.

On the Philippine side, organizations such as the Chamber of Mines of the Philippines, SteelAsia, and Clark Development Corporation presented their strategies for cooperation by industry sector.

At the preceding memorandum of understanding (MOU) signing ceremony, a total of seven MOUs were concluded. HD Hyundai Heavy Industries signed an agreement to strengthen technical education and vocational training in the shipbuilding industry, while Samyang Foods established a partnership with key distribution networks in the Philippines. Korea Hydro & Nuclear Power and the Export-Import Bank of Korea signed agreements to promote nuclear power projects and cooperate in infrastructure development, further solidifying economic ties between the two countries.

This content was produced with the assistance of AI translation services.