$1.4-B Korean investments seen to spur RP economy

South Korea’s decision to pour more than $1.4-billion worth of new investments into the Philippines is "clear proof" that foreign investors expect President Arroyo to survive the political crisis, according to a political analyst.

"The said investments, once realized, will greatly help in persuading other foreign investors to put their much-needed capital in the country because other than the money, it also indicated that they still believe in the leadership of the President and that their investments are secure despite the problems besetting her administration," Ramon Casiple, of the think-tank Institute for Political Reforms, said in a statement issued to the media.

South Korean Prime Minister Lee Hae-Chan arrived in Manila yesterday for a nine-hour official visit and had talks with Mrs. Arroyo.

The $1.4-billion investments is actually the legacy of former South Korean ambassador Yu Myung-Hwan.

Trade between the Philippines and South Korea experienced an upsurge during Yu’s stint in Manila, resulting in the biggest trade gains between the two countries.

Mrs. Arroyo said 20 percent of the overall 30-percent increase in South Korean investments in the Philippines — the biggest in the history of Philippine-Korea relations — occurred during Yu’s tour of duty.

She also thanked the outgoing ambassador for the $150-million investment of a Korean private company that will set up an Agro-Industrial Park Development Project on the island province of Mindoro as well as the $100-million South Korean venture in the mining industry.

The projected $1.4-billion Korean investment is in addition to the $1-billion that construction giant Han Jin is investing in the Philippines.

A South Korean power firm, Korean Electric Power Co. (KEPCO), has already provided electricity to some 500 of the 4,000 barangays that remain without electricity. It plans to bring electricity to 2,000 more barangays.

KEPCO is also laying a $50-million submarine cable that will connect the Luzon power grid with the Mindoro grid.

Mrs. Arroyo also cited the growing number of South Korean tourists in the country and an additional 500,000 more expected to arrive before yearend. This makes the Philippines the leading Asian destination of South Koreans.

She thanked Yu for finding ways to boost trade and improve ties between Manila and Seoul.