The Department of Agriculture (DA) settled certain concerns of the Korea Agricultural Machinery Industry Cooperative (KAMICO) regarding its planned agriculture machinery complex in the country, as the agency moves to advance farm mechanization.

The DA’s delegation, led by Agriculture Secretary Francisco Tiu Laurel, recently visited South Korea to meet with KAMICO officials to discuss “investment opportunities and policy coordination.”

The agency said in a statement that the engagement centered around the planned 20-hectare Korea Agriculture Machinery Industry Complex (KAMIC) in Cabanatuan City, Nueva Ecija.

The DA, KAMICO, and the local government unit (LGU) signed the memorandum of understanding (MOU) in October last year to establish KAMIC.

This builds upon an earlier agreement in 2023 between the governments of the Philippines and South Korea to establish an agricultural machinery manufacturing cluster in the country.

The DA previously announced that the groundbreaking for KAMIC was scheduled for March 31. It has yet to disclose other developments.

“This project plays a crucial role in realizing President Ferdinand Marcos Jr.’s vision of a modernized Philippine agriculture—one that ensures food security and uplifts the lives of our farmers,” said Laurel.

“It will also attract foreign investments, generate jobs and transfer newer technologies,” he added.

According to the DA, one of the key topics tackled during its meeting with KAMICO is the package of investment incentives that the government is offering to foreign investors.

It cited the six-year income tax holiday and the reduction of the corporate income tax rate from 25 to 20 percent for eligible projects.

KAMICO requested a follow-up meeting with the Department of Trade and Industry (DTI) in Manila to iron out the specifics of these incentives, especially how its member companies can benefit from them.

KAMICO comprises more than 350 companies and is recognized as a major player in the modernization push of the South Korean agriculture industry.

The DA said the meeting also addressed land lease issues, particularly the cost of renting the site in Cabanatuan City.

The agency has committed to coordinating with the LGU to determine “a fair rental rate that would be mutually acceptable to both the investors and the city government.”

KAMIC strives to serve as modern complex that will attract locators that focus on assembly and manufacturing of agricultural machinery.

Based on local media, there are 10 companies already in talks to build a factory in the area.

DA officials also met with Asia Tech, a South Korean agri-machinery company known for innovations in rice and high-value crop machinery, to discuss potential areas of collaboration.

The company expressed interest in investing in KAMIC, noting that it plans to localize the manufacturing of machines and machinery designs to better suit the country’s agricultural conditions.

The DA also visited South Korea-based agri-machinery firm Tong Yang Moolsan (TYM) in a separate development.

TYM is known for its customized tractors and advanced machinery solutions tailored to specific farm needs. It has supplied equipment to Filipino farmers through the Philippine Center for Postharvest Development and Mechanization (PhilMech).

The DA wants the Korean firm to explore machinery production for high-value crops such as coffee, cacao, onion, and coconut.

“These engagements are part of the DA’s broader push to modernize the country's agricultural sector and attract foreign investments to sustain long-term growth,” it said.