PH commits to trade pact with South Korea

(UPDATES) PRESIDENT Ferdinand Marcos Jr. on Monday committed to implement the Free Trade Agreement (FTA) with South Korea.

«We acknowledged the efforts of both sides to enhance bilateral trade, and we looked forward to implementing our free trade agreement that has been ratified and concurred [in] by the Philippine Senate,» Marcos said during his joint press conference with South Korean President Yoon Suk Yeol in Malacañang.

Yoon, who was in Manila for a two-day state visit, said the agreement will further boost trade and investment between the two countries.

DEEPENING TIES President Ferdinand Marcos Jr. and visiting Republic of Korea President Yoon Suk Yeol hold a joint press briefing in Malacañang on Oct. 7, 2024, after witnessing the signing of several agreements. PHOTO BY REVOLI CORTEZ/PPA POOL

«President Marcos and I agreed to work together in order to deliver tangible benefits to the citizens of both countries by stepping up our economic cooperation. To this end, we have committed to bringing Korea-Philippines FTA signed in September last year into force at the earliest date possible,» he said.

The pact is expected to give Philippine investors more access to South Korean markets.

It also aims to spur investments from South Korea into priority sectors, industries and emerging economic areas in the Philippines.

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During the Philippine-Korea Business Forum organized by the Philippine Chamber of Commerce and Industry and the Federation of Korean Industries in Manila later in the day, the President said the FTA «prioritizes cooperation in sectors of mutual interest, such as electric vehicles, processing of critical minerals, pharmaceuticals, and creative industries.»

In 2023, South Korea was the Philippines' fifth biggest trading partner, fifth export destination (out of 205), and the fourth largest import source (out of 220).

It was also the Philippines' fifth-biggest source of foreign direct investments (FDI) in 2021.

The FDI from South Korea amounted to $20.82 million from January to November 2023, up from $20.51 million in 2022.

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Last year, South Korea was the Philippines' sixth-largest source of Official Development Assistance (ODA),