South Korean gov’t, firms assure PH of continued investments
The South Korean government and Korean business conglomerates, including automotive giant Hyundai Motors and electronics giant Samsung, have assured they remained interested to pursue their investment plans in the Philippines.
South Korean Trade Minister of Trade, Industry and Energy Joo Hyunghwan quietly flew into the country on Monday, to visit some energy projects by Korean firms. The Korean minister also met with his Philippine counterparts DTI Secretary Ramon M. Lopez and Energy Secretary Alfonso G. Cusi.
According to Lopez, the South Korean minister has made and assurance that trade and investments in the country are not affected in light of the killing of a Korean businessman in Subic by some scoundrels in the police force.
“We talked on that (the incident) briefly, but we both recognized it as an isolated and unfortunate incident. They want to bring speedy justice and President Duterte has already assured to bring swift justice on this crime,” he said.
He said the Koreans have also acknowledged of the improved peace and order in the country, except for that unfortunate incident.
Both ministers also discussed common interests to conclude the Regional Comprehensive Economic Partnership negotiations and to advance discussion of the ASEAN-Korea free trade agreement.
On the bilateral level, Lopez also requested the Korean side to lower tariffs on bananas and pineapples and other agri products. These tropical fruits have current most favored nation tariff rate of 30 percent. The Philippines and ASEAN would like to remove this tariff barrier.
For the Korean side, they pushed for the entry of their strawberry exports. Its exports of pears are already allowed in Asean, including the Philippines.
In addition, Lopez said they also discussed about the investment plans of Korean auto giant Hyundai Motors. The Philippines has been pursuing Hyundai to participate in the government’s CARS (Comprehensive Automotive Resurgence Strategy) Program, which dangles $600-million tax perks to three participants. So far, there are only two program participants – Mitsubishi Motors Philippines and Toyota Motor Philippines. Hyundai will complete the program if it decides to finally join the program.
“They are still reviewing,” Lopez said referring to Hyundai. He said Hyundai officials are non-committal and gave no indication when they could possibly decide on the Philippine request to invest in the automotive sector.
Lopez further reported that he met late last week some officials of Samsung Electronics Philippines Corporation.
According to Lopez, the Samsung manufacturing unit in the Philippines is investing $200 million this year. Last year, the company also invested the same amount. (BCM)