09/09/2025
PRESIDENT LEE JAE MYUNG SUSPENDS 700 BILLION WON LOAN PROJECT TO THE PHILIPPINES
South Korean president Lee Jae Myung orders the suspension of a 700 billion won loan project to the Philippines, citing concerns of corruption and insolvency.
Excerpt from the Hankyoreh report:
The Philippine Department of Finance submitted an application to the Korean government in November 2023 requesting an Economic Development Cooperation Fund (EDCF) loan. This $510 million (approximately KRW 710 billion) construction project will build 350 modular bridges across the Philippines, and the Philippine government has requested a loan of $439 million (approximately KRW 611.7 billion) from the Korean government.
The project aims to improve access to agricultural roads for farmers and their agricultural products by constructing steel modular bridges in 350 rural areas in the Philippines. The plan is to build 210 bridges in Luzon, 88 in the Visayas, and 53 in Mindanao by 2028.
A month after applying for the loan, in December 2023, the Philippine government officials met with Korean officials and expressed its desire for Korean companies to participate in the project. It is also known that the Philippine conglomerate LCS Group will participate in the project. LCS Group is controlled by Luis Chavit Singson, a political and business magnate who served as a member of the Philippine House of Representatives and nine-term governor. He accompanied the Philippine government to Korea during its visit.
The Ministry of Strategy and Finance has decided not to support the project due to potential corruption and mismanagement and officially notified the Philippines in April 2024.
Due to pressure from Representative Kwon Seong D**g and then-Minister Choi Sang Mok, the project was to be resumed.
Finally, South Korean president Lee Jae Myung announced the suspension of the project. He said "the fortunate thing is that the project had not yet begun, meaning no funds from the Economic Development Cooperation Fund have been spentโ.