Philippines, South Korea firms sign deals in shipbuilding, nuclear, aerospace

Leading business organizations from the Philippines and the Republic of Korea on Wednesday signed agreements in several key industries, marking an expansion of economic cooperation between the two countries.

President Ferdinand R. Marcos Jr., speaking during the Philippines–South Korea Business Forum at Conrad Hotel Manila, said the Philippine Chamber of Commerce and Industry (PCCI) and the Federation of Korean Industries (FKI) sealed agreements covering sectors such as shipbuilding, nuclear energy, aerospace, critical minerals supply chains, retail, and health and wellness.

Marcos said the agreements reflect strong interest from the private sector to strengthen bilateral economic ties.

“These demonstrate the enthusiasm of our private sectors to deepen our strong economic relations,” the President said.

“All of these will ripple into significant partnerships that will generate projects, investments, and livelihoods,” he added, addressing business leaders from both countries at the forum.

The President also noted that the presence of South Korean President Lee Jae Myung underscored Seoul’s commitment to expanding cooperation with Manila.

“We are grateful to the Republic of Korea for being a steadfast partner in this journey. Because of the confidence you have placed in our country, foreign direct investments have grown through the decades,” Marcos said.

The President emphasized that the new agreements build on a long-standing relationship grounded in mutual respect, cultural exchange and sustained economic collaboration.

“In a rapidly changing world, resilience is built not in isolation, but in partnership,” the President said, expressing confidence that the deals would help both countries secure a competitive and self-sustaining future.

Marcos also assured investors that the government continues to pursue economic reforms aimed at strengthening investor confidence, improving the ease of doing business and promoting inclusive growth.

The President also thanked the PCCI and the Federation of Korean Industries for facilitating cooperation between business leaders from both countries.

“Your collaboration exemplifies the very partnership we seek to cultivate—one grounded in initiative, coordination, and purpose. As we move forward, let this gathering give rise to partnerships that are both profitable and purposeful,” Marcos said.

Top trading partner

PCCI President Perry Ferrer said the Philippines’ trade relationship with South Korea has evolved into a strategic and forward-looking partnership built on complementary economic strengths.

He noted that South Korea consistently ranks among the Philippines’ top trading partners, with bilateral trade spanning electronics, semiconductors, machinery, transport equipment, mineral resources and agricultural products such as bananas and pineapples.

Philippine exports support Korea’s advanced manufacturing sector, while Korean exports contribute to the Philippines’ industrial modernization and consumer market growth.

“Korean investments have significantly shaped key Philippine sectors, including infrastructure, shipbuilding, energy, electronics, automotive, telecommunications, and construction. Major Korean conglomerates have helped modernize transport systems, power generation facilities, and digital connectivity, supporting the Philippines’ broader development agenda. In turn, Philippine enterprises are increasingly exploring opportunities in the Korean market, particularly in agri-business, IT-BPM services, and creative industries,” Ferrer said.

He added that the entry into force of the Philippines–Korea Free Trade Agreement (FTA) marked a milestone in bilateral relations by improving market access, reducing tariffs and strengthening cooperation in emerging sectors.

“The Republic of Korea is among the Philippines’ leading sources of foreign direct investment (FDI) and official development assistance. Through agencies such as the Korea International Cooperation Agency, Korea has supported infrastructure modernization, rural development, education, and digital transformation initiatives. These programs complement private sector investments and reflect a long-term partnership built on trust and shared development goals,” Ferrer said.

South Korea also emerged as a leading source of foreign direct investment (FDI) to the Philippines in late 2025, particularly in November, with $897 million in net inflows, largely directed toward the manufacturing sector.

The country was also consistently among the top sources of equity capital from January to November 2025, according to data from the Bangko Sentral ng Pilipinas.