03 June 2015 – A 20-strong Philippine investment promotion mission to Korea, led by Philippine Foreign Undersecretary for International Economic Relations Laura Q. del Rosario, expressed satisfaction in the high level of interest shown by the South Korean corporations who participated in a conference business matching sessions in central Seoul on May 28. 

Fresh from chairing the APEC SOM in Boracay last week, the Undersecretary noted the serious inquiries and responses made by Korean firms, which include chaebol (conglomerates), as well as leading utilities, engineering and construction companies, in the back-to-back meetings hosted by the Philippine Embassy in Seoul and the Philippine Investment Conference held at the ASEAN-Korea Centre (AKC).

In particular, the Undersecretary said that Korean corporate executives took note of the Philippines’ adoption in July 2014 of Republic Act 10641, which allows foreign banks to operate with up to 100 percent equity, up from the previous limit of 60 percent. This law enables Korean banks to set up operations in the Philippines and provide financing to Korean firms entering the country.

A number of Korean banks are in the process of following the footsteps of Korea Exchange Bank (KEB), which has been the only Korean bank doing business in the Philippines since December 1981. It opened a second Philippines branch at the Clark Freeport Zone in September 2013 to enhance its sales network in the region.

Philippine Ambassador to South Korea Raul S. Hernandez noted in his opening speech at the investment conference the “keen interest on both sides to undertake joint projects and pursue trade and investment opportunities” at the B2B meetings held earlier that day.

Taking note of first quarter 2015 growth figures, Ambassador Hernandez said the Philippine economy has expanded for 65 consecutive quarters (more than 16 years) from the first quarter of this year. “We are thus the best-performing market in the 600-million-strong ASEAN just before its full integration at the end of this year,” he said.

Welcoming the participants to the ASEAN Hall, AKC Secretary General Kim Young-sun called the Philippines “the most attractive economy” in the ASEAN Economic Community (AEC). The formal establishment of the AEC is set to commence at the end of 2015. “This investment conference provides a venue for companies to understand Philippine investment policies,” stated the Secretary General.

Undersecretary del Rosario made a pitch for more South Korean trade and investment by citing demographics. “With a population of 100 million people and a young workforce averaging 22 years old, the Philippines is an ideal destination for investors who wish to invest in the Philippine as a manufacturing base in order to tap both domestic and international markets,” she said.

The three-day-long investment promotion mission started on May 27, where, mere hours after the arrival of the Philippine delegation, they went straight into meetings with the Korea Importers Association (KOIMA). The Philippine delegation was composed of state-owned and -run companies in Region III (Central Luzon) such as the Bases Conversion Development Authority (BCDA), Subic Bay Metropolitan Authority (SBMA), and Clark Development Corporation (CDC), Freeport Authority of Bataan, and Clark International Airport Corp., among others.

During her three-day visit to South Korea, Undersecretary del Rosario also gave a lecture on the Asia-Pacific Economic Cooperation (APEC) and the Philippines’ role in it to students of the Graduate School of International Studies at the leading private Sogang University. She also held a roundtable discussion with security and economic specialists at the Institute of Foreign Affairs and National Security(IFANS) at the Korea National Diplomatic Academy (KNDA).

Undersecretary del Rosario also taped an interview about APEC and Philippine-Korea relations for a business program on Arirang News and met with officers and staff of the Philippine Embassy in Seoul. END