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The Philippines and South Korea signed an upgraded memorandum of understanding that strengthens cooperation in trade, investment, and economic cooperation at a time of rapid global economic shifts
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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
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Under the enhanced framework, cooperation will be expanded in focus sectors, such as automotive, shipbuilding, marine equipment, semiconductors, electronics and electrical equipment
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The MOU strengthens and supports the implementation of the Philippines-Korea free trade agreement
The Philippines and South Korea signed an upgraded memorandum of understanding (MOU) that strengthens cooperation in trade, investment, and economic cooperation at a time of rapid global economic shifts.
The new MOU, signed by the Department of Trade and Industry (DTI) and Korea’s Ministry of Trade, Industry and Resources, establishes a more robust and action-oriented Joint Commission on Trade, Investment, and Economic Cooperation (JCTIEC), DTI said in a statement.
JCTIEC is a high-level platform designed not only to expand bilateral trade and accelerate investments, but to complement both countries’ industrial capabilities in strategic sectors that will shape the next phase of growth.
The signing ceremony was done during the state visit of Republic of Korea President Lee Jae Myung this week.
DTI said the MOU signals both countries’ commitment to operationalizing the existing partnership 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,” DTI Secretary Ma. Cristina 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. These industries represent key pillars of the Philippines’ industrial development strategy and are aligned with Korea’s global leadership in advanced manufacturing and technology-driven sectors.
The MOU also introduces operational enhancements designed to improve implementation mechanisms. A vice-ministerial or undersecretary-level ad hoc consultative body will be created to address issues faced by businesses and investors. DTI said this mechanism is expected to provide a more agile and practical channel for resolving bottlenecks and facilitating smoother trade and investment flows.
READ: PH, South Korea sign deal to accelerate trade
The MOU further strengthens and supports the implementation of the Philippines-Korea free trade agreement (FTA), particularly its Economic and Technical Cooperation Chapter, in the identification of priority projects and activities in support of industrial growth and development. The FTA entered into force on December 31, 2024.
DTI said the Philippines considers South Korea as one of its most important economic partners, 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,” Roque said.
Aside from the MOU, South Korean companies signed a combined US$16 million worth of deals to export consumer goods to the Philippines during the South Korea-Philippines business partnership event of the state visit.
Aside from the economic MOU, the two countries signed nine other agreements during the visit relating to various sectors, including education, information and communications techonology, and agriculture, among others.
