South Korea: A partner that delivers
This week, President Ferdinand Marcos Jr. welcomed South Korean President Lee Jae Myung to Malacañang, marking 77 years of diplomatic relations between the two countries.
Over the decades, South Korea has emerged as one of the Philippines’ most reliable economic partners, particularly in manufacturing, technology and industrial development. Investments in these sectors have expanded production and created quality jobs for Filipino workers. Beyond wages, these jobs provide income stability and opportunities for families to invest in education and long-term security.
These are actual investments that translate into tangible economic benefits. They are not merely pledges announced during high-level visits and highlighted in press releases, only to fizzle out. With South Korea, commitments have consistently translated into projects, factories and industries that generate employment and stimulate local economies.
Beyond the immediate economic gains, Korean investments also help strengthen the country’s industrial capabilities. Filipino workers gain exposure to advanced technology and technical training, enabling them to adapt to the rapid evolution of modern industries. Over time, these skills contribute to a more competitive workforce capable of supporting the country’s long-term development.
The numbers reflect the depth of this economic partnership. A November 2025 report from the Bangko Sentral ng Pilipinas identified South Korea as the leading source of foreign direct investment in the Philippines. Data from the Philippine Economic Zone Authority also show that in 2025 alone, South Korean companies were among the top investors in Philippine economic zones, with investments reaching P11.464 billion.
Several major Korean firms have established a strong presence in the country, including Samsung Electro-Mechanics, SFA Semicon and HD Hyundai Heavy Industries. Their operations have helped strengthen the Philippines’ role in regional manufacturing supply chains while generating thousands of jobs for Filipino workers.
Another significant development in bilateral economic relations is the Free Trade Agreement between the Philippines and South Korea, signed in December 2024. The agreement removes tariffs on 94.8 percent of Philippine goods exported to Korea, opening wider opportunities for Filipino exporters to access the Korean market.
For Philippine businesses, particularly those in manufacturing and agriculture, greater market access translates into expanded opportunities for growth. The agreement also reinforces the Philippines’ position as a competitive production base within the region.
President Lee's visit took place this week. Although the visit came together quickly, the two leaders had already met on the sidelines of the Asia-Pacific Economic Cooperation meetings in Korea last year, where they held productive discussions on strengthening bilateral ties.
President Lee’s visit signals a strong commitment from both countries to deepen cooperation and maintain economic engagement. It also reflects the enduring nature of the Philippines-South Korea partnership, which has continued to grow across decades and through different political administrations.
During the visit, economic cooperation between the Philippines and the Republic of Korea was further strengthened with the signing of a memorandum of understanding (MOU) aimed at enhancing collaboration in trade, investment and economic development at a time of rapid global change.
The MOU, signed between the trade departments of each, establishes a robust and action-oriented Joint Commission on Trade, Investment and Economic Cooperation. The commission is designed to promote a more coordinated and action-oriented approach to further expand bilateral economic initiatives.
Through this mechanism, both countries seek to align their respective industrial strengths in strategic sectors that can drive future growth.
These include automotive, shipbuilding, semiconductors, electronics and electrical equipment, energy and the digital economy.
These sectors are particularly significant because they form part of the Philippines' broader industrial development strategy while also aligning with South Korea's global leadership in advanced manufacturing and technology. Strengthening cooperation in these areas can help accelerate industrial upgrading, enhance innovation and create more high-quality employment opportunities for Filipinos.
The challenge lies now in translating the objectives of the MOU into measurable outcomes. Effective implementation will be essential to ensure that the framework leads to concrete investments, technology transfers and expanded industrial cooperation.
High-level visits such as President Lee's play an important role in strengthening investor confidence and encouraging greater business engagement.
When a highly advanced economy like South Korea continues to deepen economic ties with the Philippines, it sends a clear signal to the global investment community that the country remains a viable and promising destination for long-term investment.
Such partnerships are particularly important in today's uncertain geopolitical environment. Recent developments in the Middle East, for instance, remind us how quickly global events can disrupt economic stability.
Potential disruptions in oil supply could drive up energy prices and trigger inflationary pressures that affect economies worldwide. For the Philippines, such external shocks pose real challenges not only for economic policymakers but also for ordinary Filipinos who ultimately bear the impact of rising costs.
One way to mitigate these risks is by strengthening domestic industries that provide greater economic stability and resilience. Investments that build manufacturing capacity, expand technological capabilities and generate sustainable employment help create a stronger economic foundation.
This is where partnerships with countries like South Korea become particularly valuable. Continued Korean investment and deeper trade cooperation support the growth of industries that can anchor economic stability even amid global uncertainty.
Even in the face of external risks, Filipinos can benefit from economic security built on stable investments, strong industries and reliable employment opportunities.
Indeed, President Lee Jae Myung’s visit reinforces South Korea’s role as one of the Philippines’ most important partners in achieving economic security—through investments that generate jobs, strengthen industrial capacity and support long-term growth.
Economic security ultimately rests on economic resilience. And resilience is not built overnight. It requires consistent planning, strategic investments and reliable partners willing to nurture cooperation across decades.
South Korea has proven to be one such partner.
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Rupert Paul Manhit is the COO and managing director of think tank Stratbase Group. He is the executive director of Philippine Trade Foundation (Phils Inc.)
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