Phl eyes stronger South Korea investments

The Philippine government is seeking to enhance the ease of doing business with South Korea, according to the Office of the Executive Secretary (OES).

In a Tuesday press release, the OES said Executive Secretary Ralph Recto met with Lee Sang-Hwa, Ambassador of the Republic of Korea to the Philippines, on Monday to deepen bilateral ties and explore opportunities to attract more Korean investments into the country.

Recto assured the Korean envoy that the Philippine government is proactively addressing investor concerns to make the country a more competitive and secure investment destination.

Foreign direct investments (FDIs) rose for the second consecutive month, according to the latest data from the Bangko Sentral ng Pilipinas (BSP). However, FDIs for the first 11 months of 2025 remained subdued compared with 2024 amid governance concerns. Net inflows totaled approximately $7.1 billion during the period, down by about $2 billion — roughly P117 billion at current exchange rates — from 2024, indicating lingering investor apprehension as the flood control infrastructure controversy continues to weigh on sentiment.

Investor confidence, however, has shown signs of recovery at the start of 2026, with the benchmark Philippine Stock Exchange Index (PSEi) up about 5 percent from its 12-year low in 2025, signaling improving market sentiment following last year’s economic downturn. The BSP’s latest business and consumer sentiment surveys likewise indicate improving confidence levels, although they remain subdued due to persistent governance issues.

During the meeting, the Korean delegation also conveyed strong support for the Philippines’ hosting of ASEAN meetings this year, noting that South Korea is keen to strengthen relations with the region.

Last year, South Korea hosted the Asia-Pacific Economic Cooperation (APEC) Summit, where the Philippine government secured a landmark P50.7-billion investment from Samsung Electro-Mechanics Philippine Corporation (SEMPHIL), the first project granted Presidential Incentives under the CREATE MORE Act (Republic Act No. 12066).

President Ferdinand R. Marcos Jr. announced the development following his meeting with executives of Samsung Electro-Mechanics Co., Ltd. (SEMCO) on the sidelines of the 32nd APEC Summit.

“Samsung is already in the Philippines. They have employed thousands of Filipinos in their very, very high-tech manufacturing plant,” Marcos Jr. said.

Earlier this week, Jollibee Foods Corp. (JFC) also disclosed new deals involving South Korean companies. Its subsidiary Jolli-K Co., Ltd., through Jollibee Worldwide Pte. Ltd., signed an agreement on 13 February to acquire 100 percent of All Day Fresh Co., Ltd., operator of the “Shabu All Day” brand, for about KRW126.9 billion, or around P5.1 billion at the current exchange rate.

JFC also informed the stock exchange that its subsidiary, Fresh N’ Famous Foods, Inc., signed a master franchise agreement to bring Compose Coffee to the Philippine market through its franchising network, with a planned launch this year.

The meeting between the two nations comes ahead of the 77th anniversary of diplomatic relations between the Philippines and South Korea in March, with both nations reaffirming their commitment to further strengthening bilateral ties.