The Philippines and the Republic of Korea (RoK) are expanding shipbuilding cooperation under one of several memoranda of understanding signed by officials from the two countries in Malacañang Palace on Tuesday.

“Korea and the Philippines are shipbuilding powerhouses ranked second and fourth, respectively, by volume. Thus, potential is abundant for cooperation in this sector,” said visiting South Korean President Lee Jae Myung during his speech.

“Through expanded cooperation in shipbuilding, we look forward to creating synergistic effects that will enhance the competitiveness of both our industries,” he added.

South Korean giant HD Korea Shipbuilding & Offshore Engineering is currently constructing a large bulk carrier at its newly leased facility in Subic Bay, the Philippines, its first 115,000-ton petrochemical carrier to be built in the country since 2019.

The vessel is being built at the HD Hyundai Heavy Industries Philippines, with the South Korean shipbuilding giant investing $180 million this year in the revival of the Subic Shipyard and another $50 million expected to be invested by 2030.

The yard currently employs 1,200 people and is expected to employ 4,300 people by 2030.

For his part, President Ferdinand Marcos Jr. expressed appreciation for RoK’s invaluable assistance and contributions to “the investments that help revive our shipbuilding industry and strengthen our role in the semiconductor value chain.”

“During our comprehensive meetings, President Lee and I covered a wide range of areas in our bilateral partnership, including defense and security, maritime cooperation, economic and development cooperation, and, of course, people-to-people exchanges. We agreed that we have made significant strides in advancing and deepening our bilateral cooperation towards the attainment of our mutually beneficial goals,” Marcos said.

“We acknowledged the efforts of both sides to enhance bilateral trade and investment, and we looked forward to realizing the full potential of the PH-RoK Free Trade Agreement for the benefit of both our peoples,” Marcos added.