VIBRANT PHILIPPINE-KOREA ECONOMIC TIES
TTrade Agreement (FTA) came into full force in 2009, economic cooperation has expanded in various areas. Notably, trade volume between Korea and the ASEAN has increased from $8.2 billion in 1989 to $124 billion in 2016.
Korea has built its competitiveness in infrastructure projects, starting from its domestic development experience to its overseas completions of major infrafacilities. The ambitious ‘Build Build Build’ infrastructure program embarked on by the Duterte administration provides good momentum for Korean companies.
Korea has been a major partner of the Philippines’ infrastructure development in the construction of road, airport, railroad, port, and telecommunication facilities. This year the renovation of the Puerto Princesa Airport Project ($83 million) was completed. Furthermore, the Panguil Bay Bridge Project ($100 million) and Jalaur River MultiPurpose Dam Project ($220 million) are expected to start next year. Construction of the New Cebu International Container Port Project ($180 million) is currently under discussion.
Korea’s continuous support for infrastructure development affirms its commitment to contribute to the inclusive growth of the Philippine economy. he Philippines and Korea have been enjoying a healthy and dynamic relationship since the Korean War. The relations between the two countries naturally expanded to other areas of cooperation like development assistance, especially trade and investment.
Post-war Korea was one of the poorest nations in the world. However, thanks to internal efforts supported by the indomitable spirit of the Korean people, together with a favorable external environment, Korea was able to literally rise from the ashes to modernize and turn into a developed nation.
Today, the Republic of Korea is the 11th largest economy in the world. Its per capita GDP is around $30,000, which is a long way from its post-war figure of less than $100. It is one of the world’s leaders in shipbuilding, telecommunications, consumer electronics, and automobile manufacturing, with internationally outstanding brands such as Samsung, LG, Hyundai, Kia, and Hanjin.
Korea has also deepened its economic ties with the Philippines, currently being a major source of foreign investments. Hundreds of Korean companies are now operating in the country, such as Korean Electric Power Corp., Hanjin Shipbuilding Co., Daelim, and SFA Semicon Co. Such companies have contributed to job creation, infrastructure build-up, and development of the Philippine economy.
Korea also ranks as the Philippines’ fifth largest trading partner, with exports to the Philippines at around $4 billion and imports at $1.5 billion for the first seven months of this year.
Labor cooperation likewise remained robust. Under the Employment Permit System (EPS) of the Korean Government, about 24,000 Filipinos are now working in Korea. There are constant opportunities for more skilled Filipinos to work in Korea.
On the occasion of the Philippines’ Chairmanship of ASEAN 2017, KoreaASEAN economic relations have further intensified. Since the ASEAN-Korea Free