SOUTH Korea is looking at expanding business opportunities in the Philippines, a Cabinet official said on Monday.
Finance Secretary Carlos Dominguez 3rd in a statement on Monday said he had a meeting with South Korean Ambassador to the Philippines Han Dong-man and the ambassador disclosed that his country is planning to expand business opportunities in the Philippines.
Han, however, expressed concern over the country’s high corporate income tax (CIT) rate of 30 percent.
Dominguez responded by explaining the proposed CIT reduction under the Corporate Recovery and Tax Incentives for Enterprises bill, which seeks to provide an outright tax cut of 5 percentage points from the current 30-percent tax rate to 25 percent starting this year, and an additional 1 percent reduction every year until the CIT goes down to 20 percent.
The ambassador said a possible investment opportunity that the two countries can explore is the manufacture of environment-friendly vehicles, considering that the Philippines is one of the world’s biggest producers of nickel, which is a key component in making electric car batteries.
During the meeting, Dominguez also expressed his appreciation for South Korea’s plan to further expand its investments in the Philippines and step up the pace of the negotiations on the proposed Philippines-Korea Free Trade Agreement (FTA).
South Korea and the Philippines are in the final stages of negotiations of an FTA, which will further expand trade and investment opportunities between the two countries.
Dominguez said the Philippines fully supports the FTA, further noting that the Philippines is a strategic location in expanding South Korea’s trade footprint in the $2.6-trillion Association of Southeast Asian Nations market.
He also said South Korea has also expressed its willingness to extend funding support to the Panay-Guimaras-Negros Bridge Project in Western Visayas.
The Finance chief said the Philippine government is intent on advancing the processing of loans and grants with South Korea in the pipeline, such as a possible additional loan for the Covid-19 pandemic response, and financing support for several projects on maritime safety, a water resources management information system, agricultural modernization and forest management.
Dominguez also sought South Korea’s support in establishing a framework agreement that will provide a basis to process financing intended for the procurement of military equipment for the Department of National Defense.
Han, for his part, said South Korea is always ready to assist the Philippines in implementing its development agenda and in extending support during emergencies.