South Korea Boosts Development Assistance to the Philippines to P4.4 Billion in 2023

MANILA – South Korea has affirmed its position as a major development partner of the Philippines, with its official development assistance (ODA) for the year 2023 reaching approximately USD80 million, equivalent to around PHP4.4 billion.

According to Philippines News Agency, in a recent opinion piece, South Korea is committed to enhancing its cooperative relationship with Manila, particularly in light of the upcoming 75th anniversary of their diplomatic relations in 2024. Ambassador Lee emphasized that development assistance is not merely charity, but a valuable investment in mutual security and prosperity, acting as a growth engine that fosters job creation, market expansion, and supports transitional countries.

Lee pointed out the Philippines’ status as one of the fastest-growing economies in Asia, with strategic geographical positioning and abundant natural and human resources, making South Korea’s development cooperation in the country a strategic and mutually beneficial partnership.

The development relationship between Korea and the Philippines began over three decades ago, in 1991, with the initial invitation of Filipino officials to participate in training programs in Korea. Since then, this collaboration has expanded into various sectors, including agriculture, infrastructure, climate change, disaster risk reduction, health, and science and technology innovation.

The contribution of the Korea International Cooperation Agency (KOICA) has significantly increased about 40 times since the 1990s, amounting to USD18.7 million in 2023 alone. Furthermore, the Philippines stands as one of the largest beneficiaries of the economic development cooperation fund (EDCF) from the Export-Import Bank of Korea (KEXIM).

KEXIM Bank, a state-owned credit agency, manages the EDCF, a Korean ODA program aimed at promoting economic cooperation with developing countries. This ongoing support underscores the strength of the ties between South Korea and the Philippines, marking a sustained commitment to shared growth and development.