AS THE Philippines awaits the ratification of the Free Trade Agreement (FTA) with South Korea, the Board of Investments (BOI) and Shinhan Bank, Co., Ltd. (SHB), a leading South Korean commercial bank, have signed a Memorandum of Understanding (MOU) to cooperate in attracting more Korean investors to the country.
Trade Undersecretary and BOI Managing Head, Ceferino S. Rodolfo and SHB Head of Global Business Promotion Division, Mr. Jang Seongeun, led the ceremonial signing of the MOU for Cooperation on the Promotion of Investments at the BOI Head Office on August 29, 2024.
Making it happen with Shinhan Bank. Trade Undersecretary and BOI Managing Head Ceferino Rodolfo (left) and Mr. Jang Seongeun, Head of the Global Business Promotion Division of SHB (right), led the ceremonial signing of the MOU for Cooperation on the Promotion of Investments at the BOI Main Office on August 29, 2024.
“We are very excited about the collaboration between the BOI and Shinhan Bank to attract investments from South Korea as we await the ratification of the Free Trade Agreement between our countries. Partnerships like this are crucial in maximizing the benefits of the FTA. What’s most important is working together to fully realize those advantages,” said Undersecretary Rodolfo during the ceremony.
According to Mr. Jang, the MOU is an indication of SHB’s goal to strengthen its partnership with the BOI in various areas. “Nowadays, Korean companies are actively seeking opportunities to advance into the Southeast Asian markets, and among those, the Philippines is one of the most attractive destinations,” Mr. Jang said.
“Shinhan Bank has a strong commitment to providing tailored financial solutions and local market insights to Korean companies through close collaboration with the BOI, ensuring their successful expansion into the Philippine market. Our goal is to enhance economic exchanges between the two countries and contribute to creating new growth engines,” he added.
Since the signing of the Philippines-South Korea FTA last year, and with this year marking their 75th anniversary of diplomatic relations, exchanges between the two countries have become more dynamic, with many Korean companies showing a growing interest in investing in the Philippines.
Undersecretary Rodolfo imparted to Mr. Jang that with the positioning of the Philippines as a regional hub for smart and sustainable manufacturing and services, the BOI has been keenly promoting the country to South Korean investors in priority sectors such as in renewable energy, critical minerals processing and electric vehicle and battery manufacturing, given the complementarity of each other’s strength: PH with its sizeable resources of critical minerals such as nickel, cobalt, and copper, which are vital upstream inputs thereto; and South Korea with its global competitiveness and expertise in the corresponding downstream industries.
In addition, Undersecretary Rodolfo shared with SHB that Korean companies may also look into opportunities in the Philippines in the high-technology agriculture space, as well as in semiconductors and electronics and advanced manufacturing.
As SHB is BOI’s first partner bank in South Korea, this partnership represents a significant milestone to attract and facilitate investments from South Korea. Both parties are eager to see this relationship grow and thrive, as they collaborate in various investment promotion initiatives, including the conduct of investment seminars or missions, business matching activities, information exchanges, and investor meetings both in the Philippines and in South Korea.
The BOI, through its Investments Promotion Services, partnered with the SHB Manila Branch for its outbound business mission to South Korea in June 2024. This collaboration involved reaching out to SHB's clients and inviting them for investment meetings with the BOI.
SHB, a subsidiary of Shinhan Financial Group Co. Ltd., offers a wide range of retail and commercial banking services, as well as other related financial services. The SHB Manila Branch established its presence in the Philippines in 2015, focusing on the corporate and retail segments. PR