President Lee Jae-myung said on the 3rd (local time) that the government would support Korean defense companies in actively participating in the Philippine military modernization program. On a state visit to the Philippines, Lee said that after holding a summit with President Ferdinand Romualdez Marcos Jr. at Malacañang Palace in Manila that afternoon, the two sides signed a total of 10 memorandums of understanding (MOUs).
The two countries agreed to expand cooperation not only in strategic industries such as defense and infrastructure, which they had been working on, but also in new growth sectors including shipbuilding, nuclear power, supply chains, artificial intelligence (AI), and digital. In particular, based on the results of the "feasibility study on resuming the Bataan nuclear power plant in the Philippines" and the "MOU on cooperation for the introduction of a new nuclear power plant," they said, "Let's establish ourselves as the optimal nuclear power cooperation partners."
At the Korea-Philippines MOU exchange ceremony and joint press announcement that day, Lee said, "We strongly support the infrastructure policy that President Marcos is prioritizing and pursuing, and Korea will also closely join in," adding, "Based on the revision of the 'implementing arrangement on procurement of defense materials' between the two countries, we will work together to support our defense companies in actively participating in the Philippine military modernization program."
Under the revision of the arrangement, the two countries expanded the list of "eligible sole-source contractors" and broadened the scope of cooperation to include maintenance of weapons systems and follow-on logistics support. The government expects this will improve bidding conditions for domestic defense corporations.
In the nuclear sector, cooperation on the Bataan plant is noteworthy. Construction of the Bataan plant began in 1976 but was halted in 1986 due to the Chernobyl nuclear accident and other factors. The Philippine government decided in 2022 to resume construction to address a power shortage. If Korean corporations participate in the project, it could serve as a bridgehead for entering the Southeast Asian nuclear power market.
Cooperation in the minerals sector was also included in the MOU. Lee said, "Korea possesses advanced technology and the Philippines has abundant mineral resources, which makes the two countries ideal partners in critical minerals," adding, "Based on the 'MOU on cooperation in critical minerals' signed this time, we will further expand practical cooperation on minerals and supply chains."
◇ Private MOUs signed at the Korea-Philippines business forum
According to Cheong Wa Dae, on the occasion of the Korea-Philippines Business Forum to be held on the 4th, the two countries will also sign a total of seven private-sector MOUs in fields such as shipbuilding, nuclear power, food, and medical devices. First, Korea Hydro & Nuclear Power Co. (KHNP), the Export-Import Bank of Korea, and Philippine power company Meralco will sign an "MOU on cooperation for a new nuclear power plant." The core is to jointly develop a business model and financial structure related to the introduction of a new nuclear plant.
An "MOU on cooperation for advancement of shipbuilding technologies" will also be signed between HD Hyundai Heavy Industries and the Technical Education and Skills Development Authority (TESDA) of the Philippines. The move aims to train skilled local shipbuilding personnel and accelerate the expansion of the labor supply. In addition, the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and the Philippine Mines and Geosciences Bureau will sign an MOU to strengthen the critical minerals value chain and pursue joint exploration.