DTI outlines investment pledges from SoKor firms

The Philippines has secured from Korea a wide range of investment pledges covering the automotive, transportation, energy, construction, services, and food sectors, the Department of Trade and Industry (DTI) said.

DTI said Korean automotive giant Hyundai Motor Co. expressed interest to participate in the public utility jeepney modernization program by providing environmental-friendly automobile technologies.

Hyundai proposed a midterm and long-term investment plan to construct an assembly plant in the country for passenger vehicles.

Meanwhile, SK Energy and Services is keen on investing in liquefied natural gas (LNG) and power infrastructure development and operation, as well as LNG trading.

The company is also looking at expanding its business activity on city-gas distribution in the country.

Posco Engineering & Construction Co. Ltd., for its part, intends to expand its operations in the country with a $200 million investment expected to generate over 2,000 jobs.

Taeseong Kimchi Co. also indicated plans to expand its kimchi food production in the country, which would open up about 20,000 employment opportunities.

The company also seeks to apply an inclusive business model that will engage local farmers from Benguet for its operations.

According to the DTI, other expansion intentions came from various South Korean companies including BKS Energy Industry Ltd., Phillips Holdings Co. Ltd., SY ENC Co. Ltd., Jungheung Construction Co. Ltd., JS Development Co. Ltd., PNK Aquaculture and Trading, and Andamiro Corp.

“Our next goal now is to ensure that these investment pledges and job opportunities will materialize, and allow us to share the economic gains of the country, especially to those at the bottom of the pyramid,” Trade Secretary Ramon Lopez said.

Letters of intent between South Korean companies and the Cagayan Economic Zone Authority were likewise signed, indicating collaborative efforts in rehabilitating and modernizing the economic zone through reclamation and initiatives related to fintech, blockchain technology education, tourism, gaming, and other related business activities.

The Philippine Chamber of Commerce and Industry (PCCI) and Philippines-Korea Economic Council, for their part, came up with an agreement for an exchange of information on commerce, industry, and trade opportunities focusing on small and medium enterprises.

PCCI also inked an agreement with Korea Importers Association for the promotion of trade, economic, scientific, technological cooperation, and other business relations

Overall, the Philippine business delegation and South Korean counterparts signed a total of $4.8 billion worth of investment pledges and business expansion intentions during the business forum on Tuesday. The agreements are estimated to generate 50,800 employment opportunities in the Philippines.

During the bilateral meeting between the two governments, DTI said discussions on the establishment of the Joint Commission for Trade and Economic Cooperation were opened, as well as the possibility of a preferential trade agreement for the lowering of South Korean tariffs on Philippine agricultural products.

Both nations also agreed on furthering agricultural, science and technology, as well as security cooperation.