Korea bank set to forge pact with DBP, BDO

State-run Korea Development Bank (KDB) is scheduled to sign Monday a memorandum of understanding with the Development Bank of the Philippines on joint efforts in project financing.

KDB, which built its business supporting industrial development initiatives in South Korea, will also sign Tuesday a similar pact with Banco de Oro.

In a statement, KDB said it would work with its Philippine partners to identify and develop projects in the country, as well as on broad collaboration including financial advisory and arrangement service.

KDB said that since 1995, it has recorded 190 financial arrangement deals worth a total of $42.5 billion.

These include 23 deals outside of South Korea that account for a combined $2.2 billion.

According to British investment banking consulting firm Dealogic, KDB is the top investment bank worldwide in terms of global project finance initiatives and global public-private partnership (PPP) project finance loans.

KDB’s initiative in the Philippines comes as the South Korean government firms up efforts related to economic integration in East Asia as well as its engagement with the Association of Southeast Asian Nations.

Just last month, South Korea opened its Asean mission in Jakarta following the appointment of Seoul’s ambassador to Asean.

According to the Asean Secretariat, the establishment of the South Korean mission would facilitate the implementation of cooperation activities.

Asean is the second-largest destination for foreign direct investment from South Korea.

Two-way trade between Asean and South Korea was pegged at $124.5 billion in 2011, growing by 26 percent from $98.6 billion in 2010.