Manila urges Korean companies to invest
Lilia de Lima, director general of the Philippine Economic Zone Authority, speaks during an investment seminar held at the Plaza Hotel in Seoul, May 7. / Korea Times photo by Kim Se-jeong
Lilia de Lima, head of the Philippine Economic Zone Authority (PEZA), urged more Korean companies to consider the Philippines as an investment destination, and she had a solid reason why.
“We are very much on the radar among investors not only from Asia but from Europe,” Lima told The Korea Times, Friday. On May 2, internationally renowned credit rating agency Standard & Poors gave the Philippines a solid score as an investment destination. Previously, Fitch raised the country’s score at the end of March.
A frequent visitor to Korea, de Lima was in Seoul last week with a group of Filipino business owners, meeting face to face with Korean businessmen.
The Philippine economy is a rapidly growing one.
Although slowing slightly, the economy last year saw 7 percent growth. Manufacturing and exports are the main growth engines.
A cheap labor force and quality is one of the most appealing points to foreign investors, most of whom are Japanese.
The Philippines is not unknown among Korean investors; they are one of the five largest investors in the country, generating electricity, making ships and semiconductors and electronic goods.
According to the ASEAN-Korean Center, the Philippines is the No. 1 investment destination for Koreans out of 10 ASEAN member states. The amount of investment is $900 million, surpassing money flows to Indonesia and Vietnam.
“It is our strong bilateral relations that maintain the flow of investment from Korea,” de Lima said, referring to the Philippines participation in the Korean War (1950-53).
Hwang Woo-won, president of Dae Kyung Philippines Co. who’s been in the Philippines for more than a decade, said it’s the quality of the labor force and their loyalty that has kept him there. Still, semiconductor goods are what the Philippines is the sector it wants Koreans to invest in
The country is also pushing its jewelry industry.
Teresa Charminia Florencio from the Philippine Jewelry Association who was part of the delegation said gold and pearls are abundant in the Philippines and the field is open to investors interested in processing the precious metal and gemstone.
The trade and investment is an outstanding pillar of the bilateral relations. Last year alone, the two-way trade surpassed $1 billion with the Philippines running a deficit.
The country with more than 7,000 islands is popular as a tourist destination. It is one of the most-visited countries for Koreans with one million visiting it per year. The rest are from Thailand, Japan, China and the United States. Its climate and affordability attracts Koreans wanting to retire. The English-speaking environment is also an appealing point to parents who are crazy about getting their children an English education.
A growing number of Filipina spouses of Koreans are an important part of relations. Lawmaker Jasmine Lee, a naturalized Korean, is a role model for many Filipinas.