By Kang Hyun-kyung
Korea and the Philippines signed a set of agreements Monday highlighting the two sides’ close cooperation in development assistance to help the Southeast Asian economy take off.
Under the plan, the government will grant a total of $500 million in loans to the Philippines over the next three years to help it modernize its economic infrastructure.
The announcement came on the sidelines of a summit held between President Lee Myung-bak and President Benigno Simeon Aquino III at the presidential palace in Manila.
During a joint press conference held after the summit, Lee said he hoped the two nations would cooperate closely through the loan and aid programs.
Lee and Aquino III agreed to strengthen cooperation in agriculture and work closely to help the Philippines benefit from Korea’s technical and development assistance.
Under the mid-range strategy, dubbed the Philippines Development Plan, the Southeast Asian country is striving to lift its economy to the next level by building good governance.
To assist the Philippines, the Korean government announced the plan for the provision of $500 million worth of loans, an increase of $200 million from a previous three-year period.
Lee and Aquino stood behind when the foreign ministers of the two countries signed the basic agreement on an economic development cooperation fund.
The Export-Import Bank of Korea will work with the Pilipino government to draw up detailed conditions and procedures of the loan.
Cabinet ministers of Korea and the Philippines also signed three non-binding agreements on plans to establish an agriculture cluster, a coal-fired power plant and multi-purpose dams.
The Philippines is one of the scores of countries that sent troops to South Korea during the Korean War (1950-53).
Earlier, Korea’s aid agency said the Philippines would be one of three prioritized nations, along with Ethiopia and Colombia, to which the nation will focus tailored aid as their troops were sacrificed during the fratricidal war.
During the summit, Presidents Lee and Aquino III also discussed ways to better protect their nationals in their counterpart country. Nearly 100,000 Koreans live in the Philippines, whereas 48,000 Filipinos reside in Korea.
Lee appreciated the Filipino leader for his government’s commitment and effort to better protect Korean citizens in the Southeast Asian nation.
Korean nationals’ safety issue in the Philippines has risen as a major bilateral issue over the past years as several Korean tourists and residents have fallen victims to kidnapping, murder and other incidents.
President Lee dropped by Manila for the summit on his way back to Korea after the Asia-Pacific Economic Cooperation forum held in Bali, Indonesia. He will return to Seoul today.