$4.8-B deals signed with Korean firms

The Philippine business delegation signed with its South Korean counterpart a total of $4.8 billion worth of deals capable of creating tens of thousands of jobs, the Department of Trade and Industry (DTI) said.

DTI said that 22 agreements were signed during a luncheon and business forum in South Korea on Tuesday, but clarified that 16 of these were still letters of intent (LOIs) and six were memoranda of understanding (MOUs).

In total, DTI said that these agreements could generate 50,800 employment opportunities in the Philippines.

These cover intentions to expand operations in power infrastructure development, engineering and construction, electric automobile, wind power plant, dredging and port rehabilitation, and real estate development, among others.

“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,” said Trade and Industry Secretary Ramon Lopez.

Hyundai Motor Co. (HMC) expressed its intention to participate in the PUV modernization program by providing environment-friendly automobile technologies, DTI said.

DTI said that HMC proposed a mid- 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 LNG and power infrastructure development and operation as well as LNG trading. The company is also looking to expand its business activity on city-gas distribution in the country.

POSCO Engineering and Construction Co. Ltd. intends to expand its operations in the Philippines, wanting to invest $200 million and generate over 2,000 jobs.

Taeseong Kimchi Co. expressed its plan to expand its kimchi food production in the country, which will open 20,000 employment opportunities. The company also seeks to engage local farmers from Benguet for its operations.

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.

During the bilateral meeting between the two governments, discussions on the establishment of the Joint Commission for Trade and Economic Cooperation (JCTEC) were opened as well as the possibility of a Preferential Trade Agreement for the lowering of South Korean tariffs on Philippine agricultural products.

Four LOIs between South Korean companies and the Cagayan Economic Zone Authority (Ceza) were 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.