South Korean Ambassador to Manila Lee Sang-hwa said that there was a 4,000 percent increase in South Korea’s investment in the Philippines during the first quarter of this year because of the free trade agreement (FTA) that entered into force on Dec. 31, 2024.

In a media luncheon on Tuesday, July 22, the envoy noted data from the Philippine Economic Zone Authority (PEZA), showing South Korea as the top investor in the country.

“This surge in Korean investment is largely attributed to the Korea-Philippines FTA coming into effect, coupled with the Philippine government's strong commitment to improving the investment climate, notably through initiatives like the CREATE MORE Act and the Luzon Economic Corridor,” a report by the South Korean Embassy in Manila showed.

“We expect even more good news in the months ahead as businesses act on the new opportunities unlocked by the FTA and the Philippines’ CREATE MORE Act,” the ambassador said.

Data from PEZA showed that total foreign investment in the Philippines reached P72.4 billion by June, a 59.1 percent increase from the same period last year.

Of this, Korean investment is the biggest for the first half of the year among all foreign investors, with the Bangko Sentral ng Pilipinas (BSP) reporting that Korean companies invested $16.92 million in the Philippines during that quarter.

That is an increase of 4,000 percent increase compared to the same period last year.

Lee also underscored the “friendship” and “partnership” that bind the Philippines and South Korea as “fellow maritime nations” that share the interest in upholding peace and stability in South China Sea.

He recalled how the Philippines stood in solidarity with South Korea during the Korean War exactly 75 years ago as Manila was the first Asian nation to send a 7,000-strong combat troops in 1950.

“Because our bond was forged in the crucible of war, it is natural that Korea stands as a reliable partner of the Philippines, particularly when we face deepening global instability, one that is fraught with fragmentation and uncertainty,” the ambassador said.

“As fellow maritime nations, we share an abiding interest in peace and stability, as well as upholding a rules-based order in the South China Sea and beyond,” he added.

The partnership between the two countries continues to grow, particularly in their defense cooperation to help modernize the Armed Forces of the Philippines (AFP) through the Korean-built frigate BRP Miguel Malvar commissioned in May and the 12 additional FA-50 fighter aircraft contracted in June.

“When it comes to our partnership, what binds us stronger are our people, culture, and everyday connection. Koreans and Filipinos are discovering more ways to learn from and lean on one another, from education exchanges and tourism to creative industries and start‑up collaboration,” the envoy shared.

Lee noted the cultural connection between the two countries because “Korean culture continues to bring our communities closer.”

He expressed gratitude to Filipinos who supported the latest “Squid Game” series and the animated hit “K-Pop Demon Hunters.”