The Philippines and South Korea yesterday signed agreements covering a wide range of sectors – maritime, infrastructure, and energy – as well as a a memorandum of understanding (MOU) for a feasibility study on the development and possible use of the Bataan Nuclear Power Plant (BNPP) to augment the country’s energy supply.
President Marcos Jr. and South Korean President Yoon Suk Yeol witnessed the signing of the agreements during the latter’s overnight state visit to the Philippines.
Copies of the agreements were presented to the two presidents after their bilateral meeting in Malacanang.
The agreements include: an between the Philippine Coast Guard and the Korea Coast Guard on Maritime Cooperation; MOU on the Economic Innovation Partnership Program; and an MOU for Strategic Cooperation on Critical Raw Material Supply Chains.
Also inked were a loan agreement for Samar Coastal Road II Project and an MOU on the Laguna Lakeshore Road Network Project Phase I (Stage I) and the Panay-Guimaras-Negros Island Bridges Project; and the implementation program of the MOU between the Department of Tourism of the Philippines and the Ministry of Culture, Sports and Tourism of the Republic of Korea for 2024-2029.
Also signed was an MOU on the feasibility study of the BNPP that was signed between the Philippine Department of Energy (DOE) and Korea Hydro & Nuclear Power Co., Ltd. (KHNP).
Commenting on this agreement, the President said the MOU provides for a “thorough feasibility study to continue progress on the BNPP which we envision to contribute to energy security in the country.”
Yoon, for his part, said the feasibility study will pave the way for a full-fledged nuclear energy cooperation between the Philippines and South Korea.
“We will work together to bring the age of nuclear (energy) renaissance,” he said during a separate speech during the Philippines-Republic of Korea Business Forum at the Manila Hotel.
He said the use of nuclear energy not only enables a stable supply of power but also helps promote carbon neutrality.
DOE Secretary Raphael Lotilla said the MOU provides for a strong foundation of energy cooperation between Manila and Seoul.
This study includes assessing the feasibility, safety, and sustainability of various nuclear energy options which will help the government make well-informed choices that align with the country’s long-term energy goals.
The feasibility study is set to start in January 2025 and will involve two phases — the assessment of the BNPP condition and its components, and the evaluation on whether the plant can still be refurbished using the most optimal model.
“Should the findings from the first phase determine that proceeding to the next phase is not advisable, KHNP may recommend alternative options, including the construction of a conventional plant or the development of a small modular reactor. These alternatives will be presented as viable paths forward, offering flexibility in advancing the country’s nuclear energy agenda, based on the results of the initial phase,” the DOE said in a statement.
Lotilla said the MOU is designed to generate critical information to guide the Philippine government’s decision-making process, not only on the BNPP but also in exploring other nuclear technologies and potential alternative sites for nuclear energy development.
The Philippines aims to have its first nuclear power plants operational by 2032, with an initial capacity of 1,200 MW, expanding to 2,400 MW by 2035 and reaching 4,800 MW by 2050, as outlined in the Philippi Energy Plan.
The use of nuclear energy is part of the country’s strategy to diversify its energy mix, strengthen energy security, and drive investment in human capital, ultimately improving labor productivity and fostering long-term economic growth.
Korea had first conducted studies on the BNPP in 2008 and 2017 through KHNP, KEPCO KPS and Doosan Heavy Industries and Construction.
Free trade
As this developed, Marcos has committed to implement the Philippines’ free trade agreement (FTA) with South Korea while Yoon emphasized the need to bring the agreement into force as soon as possible to boost trade and investment between Manila and Seoul.
“We acknowledged the efforts of both sides to enhance bilateral trade and we look forward to implementing our free trade agreement that has been ratified and concurred (in) by the Senate,” Marcos said in a joint press conference with Yoon in Malacañang.
The Korean leader said he and Marcos had agreed to work together to deliver tangible benefits to the citizens of both countries by stepping up the two nation’s economic cooperation.
“To this end, we have committed to bringing the Korea-Philippines FTA, signed in September last year, into force at the earliest date possible, which shall boost trade and investment between our two nations,” Yoon said.
The FTA was only ratified by the Philippines in May.
The agreement is anticipated to boost the Philippines’ position as an attractive market for intelligent and environmentally sustainable investments; enhance its access to South Korean markets; and spur strategic investments from South Korea into priority sectors, industries, and emerging economic areas within the Philippines like the automotive industry.
Tourism partners
Also yesterday, Tourism Secretary Christina Frasco and her counterpart, Minister of Culture, Sports and Tourism Yu In-chon signed the implementation program for 2024-2029 under an MOU on Tourism Cooperation previously signed in 2006.
“The… signing of the implementation program on tourism cooperation which will further enhance the longstanding relations between our two nations in tourism and people-to-people exchanges. We anticipate this will increase demand for more Philippine destinations and tourism products from our number one source market, South Korea, and provide more opportunities for the economic advancement of our people, with the expected growth in our tourism numbers,”y Frasco said.
Under the renewed cooperation, both countries have agreed to have an exchange of tourism professionals and administrators to strengthen mutual development and competency in the fields of hotels, resorts, cruises, ports, tourism products, and other related industries; exchange in tourism information on tourism development; strengthen tourism safety by establishing and improving tourism safety cooperation mechanisms through information sharing and contingency coordination; joint promotion and marketing to increase the overall number of tourist traffic between the two countries; participating in training and exchange; supporting each other’s tourism fairs, exhibitions, and other promotional initiatives; and encouraging tourism investment.
Time to invest is now
At the business forum, Marcos urged Korean businesses anew to invest in the Philippines.
“Investing in the Philippines at this opportune time is a fine strategic move,” he said as he highlighted efforts to improve business climate in the country.
He said certain laws had been enacted to improve the business environment in the country such as the Public-Private Partnership Code of the Philippines, the Internet Transactions Act, and Tatak Pinoy Act, among others.
He said Congress is also in the last stages of enacting Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy or the CREATE MORE Act.
“Through key policy reforms and measures such as these, we aim to make the Philippines a top destination for sustainability — and to be sustainable in our strategic investments,” he added.
Yoon’s state visit to the Philippines comes at the invitation of Marcos.
The visit also coincides with the celebration of the 75th anniversary of the establishment of the bilateral relations of South Korea and the Philippines. Jed Macapagal and Irma Isip
