As the Philippines moves closer to ratifying its Free Trade Agreement (FTA) with South Korea, the Board of Investments (BOI) has forged a strategic partnership with Shinhan Bank (SHB) to draw more Korean investments into the country.
On August 29, 2024, Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo and SHB’s Global Business Promotion Division Head Jang Seongeun signed a Memorandum of Understanding (MOU) at the BOI Head Office. The agreement aims to enhance cooperation in promoting investments and facilitating the entry of Korean companies into the Philippine market.
“We are very excited about the collaboration between the BOI and Shinhan Bank to attract investments from South Korea as we await the ratification of the Free Trade Agreement between our countries. Partnerships like this are crucial in maximizing the benefits of the FTA. What’s most important is working together to fully realize those advantages,” said Undersecretary Rodolfo during the ceremony.
Mr. Jang echoed the enthusiasm, highlighting SHB’s commitment to supporting Korean businesses venturing into Southeast Asia.
“Nowadays, Korean companies are actively seeking opportunities to advance into the Southeast Asian markets, and among those, the Philippines is one of the most attractive destinations,” he said.
Focus on Growth Sectors
The MOU positions the Philippines as a key destination for South Korean investments, especially in sectors like renewable energy, critical minerals processing, and electric vehicle manufacturing. Undersecretary Rodolfo emphasized the synergy between the two nations, noting the Philippines’ rich reserves of critical minerals like nickel, cobalt, and copper, which are essential for South Korea’s downstream industries in electric vehicles and battery manufacturing.
Additionally, Rodolfo encouraged Korean companies to explore opportunities in high-tech agriculture, semiconductors, electronics, and advanced manufacturing.
Partnership for a Stronger Future
Shinhan Bank is the first South Korean bank to partner with the BOI, marking a significant milestone in facilitating foreign investments. The collaboration includes investment promotion activities such as seminars, business matching, and investor meetings in both the Philippines and South Korea.
Mr. Jang reiterated SHB’s commitment, stating, “Our goal is to enhance economic exchanges between the two countries and contribute to creating new growth engines.” SHB plans to provide tailored financial solutions and local market insights to Korean companies expanding into the Philippines.
Since the Philippines-South Korea FTA was signed last year, bilateral exchanges have accelerated, with growing interest from Korean companies. The partnership also builds on the 75th anniversary of diplomatic relations between the two nations, further strengthening economic ties.
