MANILA, Philippines - A Korean business group is pushing for a bilateral trade agreement between South Korea and the Philippines to help expand trade relations.
Korean Chamber of Commerce Philippines president Edward Eun-Gap Chang told reporters at the Joint Foreign Chambers’ Networking Night, Korean businesses would want South Korea and the Philippines to have a bilateral free trade agreement similar to the bilateral agreement of the Philippines with Japan.
“Competitiveness matters now. The agreement would cover general merchandise and services and would be very beneficial to trade relations,” he said.
He said a bilateral agreement between the two countries would enhance trade relations through the reduction of tariffs.
He noted that if the two countries would have a bilateral trade agreement similar to the Japan-Philippine Economic Partnership Agreement (JPEPA), automobile manufacturer Hyundai Motor Co. for instance, could bring in vehicles with engine above three liters to the country at reduced tariffs.
Under the JPEPA, vehicles with engines above three liters imported from Japan are exempt from payment of duties.
A bilateral agreement, Chang also said, would encourage more Korean firms to come to the country and invest.
He said the SK Group and Korea Electric Power Corp. are interested in power plant projects in the Philippines.
Other Korean firms like Hanjin, Samsung, Daewoo and Hyundai, he said, are likewise planning to expand businesses here.
“Korean companies are interested in infrastructure projects here including the PPPs (public private partnership),” he also said.
Korea was the sixth biggest trading partner of the Philippines last year, with bilateral trade valued at $6.58 billion.
Investments of Korean firms in the Philippines amounted to P41.043 billion in the past two years.