Ministerial-Level Consultative Body to Be Strengthened Following Summit
MOU Signed for Trade and Investment Cooperation
Minister of Trade, Industry and Energy Kim Jeong-Kag and Philippine Secretary of Trade and Industry Maria Cristina Aldeguer Roque are posing for a commemorative photo after signing the amended Memorandum of Understanding on Trade, Investment, and Economic Cooperation on March 3 at Malaca?ang Palace in Manila, Philippines, attended by President Lee Jae-myung and President Ferdinand Marcos. 2026.3.3 Yonhap News Photo by Yonhap
South Korea and the Philippines have agreed to operate a ministerial-level consultative body on a regular basis to strengthen economic and trade cooperation. As investment and industrial cooperation between the two countries have rapidly expanded following the entry into force of the Korea-Philippines Free Trade Agreement (FTA), the plan is to specify the scope of cooperation, focusing on promising industries such as shipbuilding, semiconductors, and electrical and electronics sectors.
On March 3, Minister of Trade, Industry and Energy Kim Jeong-Kag exchanged the "Korea-Philippines MOU on Trade, Investment, and Economic Cooperation" with Cristina A. Roque, Minister of Trade and Industry of the Philippines, immediately after the Korea-Philippines summit held during President Lee Jae-myung’s state visit to the Philippines.
Through this MOU, the two countries agreed to operate a ministerial-level Economic and Trade Cooperation Committee as a regular cooperation platform. The plan is to enable more flexible and prompt consultations in the event of industrial or trade issues.
South Korea and the Philippines have convened the "Korea-Philippines Economic and Trade Cooperation Committee" three times over seven years, from 2019 to 2025, discussing overall industrial and trade cooperation. In particular, since the entry into force of the Korea-Philippines FTA in December 2024, Korean companies have rapidly increased their presence in the Philippines in sectors such as electrical and electronics, shipbuilding, key minerals, and infrastructure.
In practice, HD Hyundai has expanded shipbuilding cooperation by holding a steel cutting ceremony at the Subic Shipyard, while Samsung Electro-Mechanics is pushing for a large-scale expansion of its MLCC (Multi-Layer Ceramic Capacitor) production facility in the Philippines. The Lapu-Lapu Mine, operated by LX International, became the first in the Philippines to receive certification for mine closure environmental restoration.
Amid this trend of expanding cooperation, South Korea's status as an investor in the Philippines has also risen significantly. South Korea’s ranking as an investor in the Philippines rose from outside the top 10 in 2023 to 4th place in 2025.
In line with these changes, the two countries have agreed to make the cooperation agenda of the Economic and Trade Cooperation Committee more specific, shifting from comprehensive cooperation to a focus on promising industries such as shipbuilding, semiconductors, electrical and electronics, and the digital economy.
The Ministry of Trade, Industry and Energy plans to use the Economic and Trade Cooperation Committee as a platform to quickly address issues faced by Korean companies, taking the signing of this MOU as an opportunity. The government also plans to hold the 4th Korea-Philippines Economic and Trade Cooperation Committee within this year to discuss follow-up measures to the summit and ways to resolve difficulties faced by Korean companies operating locally.
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