South Korea vows to boost RP investments


By DAVID CAGAHASTIAN


South Korean ambassador to Manila Yu Myung-Hwan yesterday reaffirmed South Korea’s confidence in the business climate in the Philippines amid the looming fiscal crisis in the country, even as he announced the intention of the South Korean government to invest some $250 million for the establishment of a hydroelectric plant in Naga, Cebu.


During his courtesy call to Foreign Affairs Secretary Alberto Romulo, Ambassador Yu assured that South Korea will remain among the top five foreign direct investors in the Philippines despite the looming fiscal crisis in the country.

Yu even announced South Korea’s intentions to invest some $250 million for the establishment of a hydroelectric plant in Naga, Cebu, as well as its plans to encourage more South Korea investors to increase their $1 billion investments in the Philippines.

"This is indicative of a strong confidence in the Philippine economy," Yu told Romulo.

Yu said that South Korea is interested in investing into the energy sector of the Philippines, specifically the proposed hydroelectric plant to be set up in Naga, Cebu, that will require a $250 million investment from South Korea.

Trade between South Korea and the Philippines has reached $5 billion in 2003, while South Korean companies have maintained at least $1 billion worth of investments in the Philippines.

South Korea and the Philippines also agreed to increase tourist arrivals from both countries. Around 300,000 South Korean tourists have arrived in the Philippines in 2003 are expected to visit the Philippines this year.

Romulo, for his part, acknowledged South Korea’s contribution to the building of educational and vocational training facilities throughout the country, including the agricultural training center in Davao and the Information Technology Centers in Batangas and Cebu City.

Romulo also cited the increasing number of South Koreans settling in the Philippines. The Philippines is host to the third largest number of South Korean expatriates, next to Japan and the United States.

Romulo said he would firm up details of his meeting with Yu when he meets with the South Korean Foreign Minister at the sidelines of the United Nations General Assembly in New York on Monday, September 20.