MANILA, Philippines - Korean firms are interested in investing in manufacturing plants and developing tourism establishments in the country because of improving economic conditions and availability of skilled workforce, although the restriction on foreign ownership remains a concern.
“Several Korean companies are planning to transfer their plants in China to the Philippines,” Korean Chamber of Commerce Philippines president Edward Eun-Gap Chang told reporters.
He said many Korean firms are looking to move to Southeast Asian countries including the Philippines because of rising labor costs in China.
He declined to identify the firms considering to relocate here but said these are manufacturers of electronic products and other high-value items, as well as developers of resorts and golf courses.
Chang said the Philippines is seen by Korean firms as an attractive location for investments because of its strong economic performance as well as the availability of skilled workers.
“I am very optimistic because Philippine economic growth is quite good. The Philippines is getting better,” he said.
Korean firms, however, are still concerned with the country’s restrictions on foreign ownership.
“It (restriction) is one of the obstacles in making investments,” Chang said.
The 1987 Constitution prohibits foreign nationals from owning lands in the country.
The Constitution likewise sets a 40 percent limit on foreign ownership on certain industries.
“The Philippines will encourage more investments if it (foreign ownership) is liberalized,” Chang said.
House Speaker Feliciano Belmonte Jr. and Senate President Juan Ponce Enrile have met with President Aquino earlier this year to discuss constitutional reforms, with changes to be limited to economic provisions.
Belmonte said last month though that while the Congress is looking to lift the foreign ownership cap in certain areas, amendments may not be undertaken this year given scheduled breaks as well as the elections next year.
Investments made by Korean firms to the country amounted to $206 million last year.