South Korea Pledges $1.9 Billion In Loan To Philippines During Yoon Suk Yeol’s Visit

South Korean President Yoon Suk Yeol and Philippine President Ferdinand Marcos Jr agreed on Monday to enhance their defence cooperation as the two countries upgraded their relationship to a strategic partnership amid growing regional security concerns.

During discussions at the Philippine presidential palace, the two leaders addressed various issues, including tensions in the South China Sea and the Korean peninsula. They also signed agreements concerning coastguard cooperation and nuclear energy.

“President Marcos and I opened a new chapter of our partnership by elevating our relationship to a strategic partnership,” Yoon said during his state visit to Manila, which marked the first visit by a South Korean leader in over ten years.

At a joint press conference with Marcos, Yoon stated that South Korea would actively contribute to the latest phase of the Philippines’ multi-billion-dollar military modernization effort, especially as tensions with China rise in the South China Sea.

South Korea has been working to increase its global defence exports, capitalizing on opportunities that have emerged since Russia’s invasion of Ukraine, allowing it to secure significant contracts in Europe, the Middle East, and Asia. South Korea has previously sold FA-50 fighter jets, corvettes, and frigates to the Philippines and aims to become the world’s fourth-largest arms exporter by 2027.

As part of its third modernization phase, the Philippine military plans to acquire advanced military equipment such as fighter jets, submarines, and missile systems to enhance its territorial defence and maritime security.

The two leaders also committed to maintaining an international rules-based order, including ensuring safe navigation in the South China Sea. Yoon emphasized that they agreed that the international community must not tolerate North Korea’s nuclear program or its “reckless provocations.”

Yoon, who took office in 2022 with a commitment to expand South Korea’s nuclear power industry, announced the signing of a memorandum of understanding (MOU) to conduct a feasibility study for the long-dormant Bataan Nuclear Power Plant (BNPP) in the Philippines.

The BNPP, commissioned by Marcos’ late father, has not generated any electricity since its completion in 1984, despite its $2.3 billion cost and its original promise of enhancing energy security during the oil crisis of the 1970s. The Philippines is interested in utilizing nuclear power as a reliable alternative to coal as it works toward retiring coal plants to meet climate goals and strengthen energy security.

Following his visit to Manila, Yoon will travel to Singapore on Tuesday and Wednesday, and then proceed to Laos, where he will attend the regional summit of the Association of Southeast Asian Nations (ASEAN) and other Asian countries.

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