PH, Korea upgrade trade and investment pact MOU

The Philippines and the Republic of Korea elevated their economic partnership through the signing of an upgraded Memorandum of Understanding that strengthens cooperation in trade, investment, and economic cooperation at a time of rapid global economic shifts.

The new MOU between the Department of Trade and Industry and Korea’s Ministry of Trade, Industry and Resources establishes a more robust and action-oriented Joint Commission on Trade, Investment, and Economic Cooperation, a high-level platform designed to expand bilateral trade, accelerate investments, and complement both countries’ industrial capabilities in strategic sectors that will shape the next phase of growth.

Witnessed during the State Visit of ROK President Lee Jae Myung, the MOU signals both countries’ commitment to operationalizing the MOU into measurable economic outcomes, particularly in priority industries and sectors that drive industrial upgrading, innovation, and job generation.

“This MOU reinforces the strategic character of our partnership with Korea. By institutionalizing a more responsive and forward-looking cooperation mechanism, we are ensuring that trade and investment remain central pillars of a resilient and future-ready Philippine economy,” Secretary Roque said.

Under the enhanced framework, both countries agreed to expand cooperation across a wide range of focus sectors, including automotive, shipbuilding, marine equipment, semiconductors, electronics and electrical equipment, mold and die, critical raw materials, energy, and the digital economy.

The MOU also introduces operational enhancements designed to improve implementation mechanisms, including a Vice-Ministerial or Undersecretary-level ad hoc consultative body that will be created to address issues faced by businesses and investors.

The consultative body is expected to provide a more agile and practical channel for resolving bottlenecks and facilitating smoother trade and investment flows, while the MOU also strengthens and supports implementation of the Philippines–Korea free trade deal’s Economic and Technical Cooperation Chapter in identifying priority projects and activities that support industrial growth and development.

Secretary Roque emphasized that the strengthened JCTIEC framework complements the Philippines–Korea Free Trade Agreement, which entered into force on Dec. 31, 2024.

“The PH-ROK FTA provides expanded market access and tariff advantages. This upgraded cooperation mechanism ensures we maximize those benefits by aligning industry priorities, resolving business concerns swiftly, and promoting higher-value investments,” she said.

The Philippines considers Korea one of its most important economic partners, consistently ranking among its top trade partner and source of investments, with Korean firms playing a significant role in infrastructure development, electronics manufacturing, shipbuilding, and energy projects in the Philippines.

“With Korea as a strategic partner, we are reinforcing supply chain resilience, encouraging technology transfer, and building industries that generate quality jobs for Filipinos. This MOU positions our economic partnership to be more forward-looking, more responsive, and more impactful,” she added.

The signing reflects both nations’ shared push to sustain a dynamic, rules-based, and innovation-oriented economic partnership, as leaders highlighted cooperation areas that include industrial linkages and supply chains alongside other strategic priorities discussed during President Lee’s March 2026 visit.