PGMA's Speech during the 19th Joint Meeting of the Korea-Philippines Economic Council (KORPHILEC) and Philippines-Korea Economic Council (PHILKOREC)

(Dynasty Ballroom, Shilla Hotel Seoul, Korea - 04 June 2003)
Thank you very much, Secretary Roxas.

Chairman Hi Yong Kiem, Chairman Balange, Vice Minister Shil Dou Kiem, Jun Ortiz-Luis, Professor Teh, Ambassador Son Sang Ha and Ambassador Jarasa, friends both from the Philippines and Korea.

Thank you for inviting me to your 19th meeting. I'm glad that businessmen from both councils have been continuing your dialogue and interaction since 1976 when the protocol of cooperation between your mother chambers - the Korea Chamber of Commerce and Industry and the Philippine Chamber of Commerce and Industry -- was signed in Manila. And by the way, though I am speaking with you for the first time as President of the Philippines, I'm not a stranger to the Korean-Philippine Economic Council and to PHILKOREC because when I was the equivalent of Vice Minister Chil Do Kim in the Philippine government as assistant secretary and then Undersecretary of Trade and Industry in the Aquino administration, I used to be in-charge of facilitating your dialogue, remember, Robert? And I even attended and organized one of those meetings in a state visit that Vice President Doy Laurel made here in Korea. So, I'm quite familiar with your work. I've done the background work in the latter part of the 1980's. I'm honored to be now at the center stage rather than in the background, and I hope our relationship is even better today.

I remember in that trip, it was the time when I negotiated for the opening of the Korean market to our Philippine bananas. Prior to that you are accepting our bananas on counter trade -- we have to buy something so that you could buy bananas from us. And I remember when I was negotiating for better access not tied up to counter trade and better tariff terms I said, you know in the 1950's when my father was Congressman, he filed a law to send soldiers to the Korean war. And our soldiers came and gave their blood and their lives for the freedom and prosperity of the Republic of Korea.

Now, we are not asking for your blood and your lives. We're only asking for your market and your investments. In any case I'm glad that since then the Philippine bananas have been very, very welcome by the market of Korea. And I hope that with our continuing negotiations for more tariff reduction that will improve even more. But as Secretary Roxas said, that will only add 50 million more dollars to cover our trading balance of 1.2 billion dollars.

So, there are many other things that we feel could be sold by the Philippine businessmen to Korea. And because many of you were already here yesterday, I don't have to mention them again, except to say that it's not only agricultural products but world class manufactured product as well. Not to mention the world class tourism sites that have become a favorite also of the Korean citizens.

It's not only the strong institutional relations, but the close personal friendships that have infused your two organizations, that feeds the many opportunities like this event -- opportunities for our businessmen to congregate, interact among yourselves, and look forward to a positive future.

My meeting with President Roh was very successful. We met twice yesterday -- in the bilateral and also in the dinner. And we recognize that our relations run deep and remain very strong. The Philippines and Korea indeed share a deep and abiding history. We have been reminded meeting after meeting, and we should continue to be reminded how we fought side by side on the Korean peninsula for freedom and liberty, and how we worked side by side after that to build prosperous Asian economies.

I'd like to take a moment to touch on this latter point -- building on prosperous Asian economies. I apologize for my delay in arriving here but that's because I wanted to add to the report I will give you today. Because in the economic development of the Philippines, we've seen Korean businesses increase their investments and we've seen Korean tourists on our shores grow. Last year, Korean tourism to the Philippines grew by 39 percent. This year, because of SARS, it grew by only 22 percent so far. But after only ten people with SARS -- the Philippines has been declared SARS free -- and we hope that that 39 percent growth will again be achieved or even surpassed.

Yesterday, I witnessed the signing of several agreements attesting to Korean participation. And I'm very happy among this participation in the Philippine economy are many of my strategic projects. Vice Minister today talked about KEPCO. And he talked about the power plant inaugurated last year -- and also chairman talked about it -- in Batangas City. I personally went to that inauguration. That was a 700 million dollar inauguration for a thousand megawatt power plant.

Last night, I was telling the president... The president knows about that and he said that the president of KEPCO is one of the most admired and respected businessman in Korea with a reputation very well-known for principled business practices. And I am very happy that yesterday he called on me to say that they're ready for their next power project and that is a 150 million dollar project in antique to cover the shortage in Panay island. Because in the Visayas, in Panay island, the demand for electricity today is 190 megawatts, the supply is only 135 megawatts. Panay imports the balance from Negros Oriental, which of course will soon be needing its own supply for its own expansion. So, the KEPCO investment will be 100 megawatts and therefore it will make up for the requirement, it will cover the shortage.

Yesterday also -- not in front of me but in a separate event -- there was the finalization of the Korean ODA which will fund a 100 million dollars worth of projects. That includes 49 million dollars for the Southrail commuter train from Manila to Calabarzon which will probably be implemented by Daewoo which is ready to put its own 49 million dollars counterpart as well for phase 2 of the project.

Part of the 100 million dollars was also committed to complete the 9 million dollars required for the Laguindingan Airport in Northern Mindanao. And this completes and complements the whole 107 million dollars required to put up the airport. It is the last 9 million of the total 107 million that we've been looking for. We could not access the previous funds already there because we lack the last 9 million. And now, it's there.

This last 9 million allows us to start the project with a 107 million. And I mention already that Daewoo will add its own 49 million dollars of B-O-T money for the second phase of that Southrail. But that's not the only project of Daewoo informed me about yesterday. They will also be spending 25 million dollars for an E-governance project, 20 million dollars to produce buses in the Philippines using compressed natural gas to comply with the Clean Air Act. And together with Andrew Tan -- who is not here I think but who is a property magnate in the Philippines -- they'll be putting up a 20 million-dollar housing joint venture in Cainta, Rizal. Also, 10 million dollars for a rice husk power co generation project. So, it was a very good day for me in my meeting with Daewoo and its various affiliates yesterday.

Still on energy, the Philippine National Oil Company-Energy Development Corporation together with PL global of Korea will develop hydropower again in Panay island at a cost of 70 million dollars. And also build transmission lines of 25 million dollars worth. In Clark -- that's Donald's project. Is that your project, Clark? Donald? Yeah. Okay -- together with Donald Dee, Tricom will put up a 20-million dollar golf course in Clark Economic Zone. And then last night, Dick Gordon just informed me of another golf course to be put up in the Zamboanga economic zone. The government of Korea is also donating 5 million dollars for a vocational training center and 5 million dollars for an I.T. training center.

The reason why I was delayed today was because I had a meeting with Hanjin in order to put together the package, the 107 million-dollar package that I told you about earlier. Not to mention other projects that they are involved in and will continue to be involved in. Specifically, one of my favorite projects that they're working on together with our Philippine government is the Metro Manila commuter train that will close a loop in Metro Manila. So that for that southern part of Metro Manila people can hop on any stop and get out of any other stop and therefore that will reduce the traffic and make life much easier for the businessmen who are doing business there.

We appreciate your contributions to our economy, we appreciate your participation in our economy. We look forward to continuing to welcome Korean businesses and people. This year, 2003 is the 50th anniversary of the end of the Korean war. And so therefore, as we celebrate half a century after freedom and peace was assured for the Republic of Korea, I hope that we continue our partnership and work towards continuing freedom, security and prosperity in our whole region. We have been friends now for more than 50 years, deep friends, blood brothers, not necessarily relatives but blood shed together for freedom and democracy.

May our blood ties now continue to work to bring about prosperity in our region, for the Korean business committee and the Philippine men and women who all need to have a job so that they can also build prosperity for our country.

Once again, leaders and members of the two associations, thank you for your enduring ties with each other that build for enduring ties between our two countries. Let's continue to do our work together.

Kamsa hamida and Mabuhay!

[HOME]