THE Board of Investments (BOI) said it has inked an agreement with Korea Trade-Investment Promotion Agency (KOTRA) to spur cross-border investment flows between the Philippines and Korea following the recent ratification of the Free Trade Agreement (FTA) between the two nations.
Calling it a “landmark” move to strengthen bilateral trade and investment ties, the BOI, an attached agency of the Department of Trade and Industry (DTI), said it inked a Memorandum of Understanding (MOU) with Korea’s Trade-Investment Promotion Agency to advance joint efforts in investments promotion.
According to the BOI, “The MOU serves as a framework for intensifying cooperation between the two organizations to spur cross-border investment flows, laying out plans for joint investment promotion initiatives that include organizing investment seminars, trade missions, and business matching activities to connect enterprises from both sides.”
Moreover, the agreement signed between the two parties aims to build “economic and industrial” linkages, which will enable Philippine and South Korean companies to collaborate more effectively, with BOI and KOTRA providing “facilitative” support.
Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo said this MOU will allow the country to leverage South Korea’s advanced industries and technological expertise while promoting the Philippines as a hub for sustainable manufacturing and innovation.
“Together, we can make it happen in the Philippines by creating new opportunities for investment and growth, especially in high-impact sectors like electric vehicles, renewable energy, and critical minerals processing,” Rodolfo said.
On September 23, the Philippine Senate concurred in the ratification of the free trade agreement between the Philippines and South Korea.
Moving forward, Rodolfo said with tariff reductions and improved market access under the FTA, and backed by the partnership of BOI with KOTRA, business activities between the two economies are “poised to become more vibrant.”
Additionally, BOI said its recent signing of an MOU with Shinhan Bank, Co., Ltd. (SHB), one of South Korea’s leading financial institutions, signals a “coordinated approach” to enhancing financial and investment cooperation between the two countries.
“The partnership with SHB is also designed to further boost investor confidence, providing a comprehensive support ecosystem for South Korean companies looking to expand into the Philippine market,” BOI said in a statement on Monday.
The investment promotion agency said this latest partnership with KOTRA builds on BOI’s “broader” efforts to attract South Korean investors, especially in the fields of renewable energy, electric vehicles, battery manufacturing, and industrial technology.
Bilateral trade between the two economies reached over $12 billion in 2023, BOI said, adding that this figure is expected to grow further with the implementation of the FTA.