MANILA (Yonhap) -- Korea signed a series of economic cooperation agreements with the Philippines on Monday to provide the Southeast Asian nation with aid and low-interest loans and to jointly carry out projects to build a dam, a power plant and an agricultural complex.
The agreements, sealed on the sidelines of a summit between South Korean President Lee Myung-bak and Philippine President Benigno Aquino III, underscores Seoul's commitment to help a nation that sent troops to fight alongside the South during the 1950-53 Korean War.
The Philippines is the only Southeast Asian nation that participated in the war with North Korea, dispatching the fourth-largest contingent among 16 allied nations under a U.N. resolution. A total of 7,420 Filipino troops fought in the conflict, with 112 of them killed and a further 299 wounded.
"During the Korean War, Filipino young adults fought to defend freedom of South Korea," Lee said at a joint news conference with Aquino. "The Philippines has talented human resources, rich natural resources and big growth potential, and I believe the cooperation potential between the two countries is limitless."
A total of five accords were signed, including an agreement outlining the scope and responsibilities of aid provision and a deal for Seoul to provide Manila with up to US$500 million in economic development cooperation funds (EDCF) between 2011-2013.
The two sides also sealed an agreement to develop a "multi-industry cluster" in the Philippines, which will be an agricultural complex where farm products are produced and then processed for exports and sales. The complex will be set up in the southern Philippine province of Misamis Oriental.
Seoul plans to provide millions of dollars in aid and loans for the project, officials said.
The other deals are two joint projects to build a coal-fueled power plant in the Philippine city of Subic and a multi-purpose dam worth $300 million on a river in the southern province of Iloilo.
Lee thanked Manila for its continued support of Seoul's position on security issues involving North Korea, such as the standoff over Pyongyang's nuclear ambitions and the North's two deadly attacks on the South last year.
Lee said the two countries agreed to continue cooperating in maritime security issues.
Lee arrived in Manila Sunday for a three-day state visit that also includes a meeting with Philippine business leaders and a town hall-style meeting with college students. On Sunday, Lee paid his respects at a war memorial for veterans of the Korean War and held a meeting with South Koreans living in the Philippines.
In Monday's summit, Lee and Aquino also agreed to cooperate closely to maximize the effects of Seoul's development aid by putting together assistance strategies supporting Manila's economic development blue print, known as the Philippines Development Plan, the presidential office said.
The two leaders also discussed ways to improve the safety of citizens staying in each other's nation and expand cooperation in the cultural and education sectors, the office said in a statement.
Lee also invited Aquino to visit South Korea next year for March's Nuclear Security Summit, it said.
"The point of today's summit is that the Philippines is a promising market for us," a senior presidential official said. "The country had high growth rates in recent years and has huge growth potential, but economic cooperation has been relatively small so far. This country is a good cooperation partner for us."