S. Korea to give $500 mln in aid to Philippines over 2 years

S. Korea to give $500 mln in aid to Philippines over 2 years. November. 21, 2011 23:06. srkim@donga.com.

South Korea signed an agreement Monday to help the Philippines economic development plan worth 500 million U.S. dollars over the next two years.

This was decided on the sidelines of a summit between President Lee Myung-bak and Philippine President Benigno Aquino III at the presidential palace in Manila. Both leaders signed five cooperation accords, including one on free aid to develop the Philippine agricultural industry and another on giving up to 500 million dollars in loans through 2013.

The government also agreed to provide 11.9 million dollars to develop an agricultural complex in the southern region of the Philippines. Other deals included Korean participation in Korea Electric Power Corp. and Hanjin Heavy Industries & Construction’s project to build a coal-fueled power plant in the Philippine city of Subic and a multi-purpose dam on a river in the southern province of Iloilo.

A considerable portion of the aid package to the Philippines will be used to build social infrastructure, including the power plant in Subic and the dam in Iloilo. Korean companies are expected to join the projects as developers.

“With its population topping the 100 million mark, the Philippines is a promising market for Korea with abundant human and natural resources,” said senior presidential secretary for public relations Choi Geum-nak. “The country has had high growth rates in recent years, with the economy growing 7.6 percent last year. The country has huge growth potential for investment and tourism.”

The Philippines was the first Southeast Asian state with which South Korea established diplomatic ties. A combined Filipino 7,400 soldiers fought alongside South Korean forces in the Korean War. Bilateral trade volume reached 9.3 billion dollars last year.

In a news briefing after the summit, President Lee talked about the territorial conflict over the East China Sea between the Philippines and China, saying, “Korea and the Philippines will continue cooperation in maritime defense, conflict and safety issues in the East China Sea.”