Korea Eximbank has set up an office in the Philippines in anticipation of the expected rise in investments from South Korean firms.
South Korean companies from various industries are keen on putting up operations in the Philippines because of the country's favourable economic growth prospects, Korea Eximbank said. Among the positive economic indicators are the relatively huge population.
"More Korean companies will come to the Philippines. That is why we decided it was time to open a representative office here," said Tae-ik Park, chief representatives of Korea Eximbank to the Philippines.
"The Philippines has a high population [estimated at about 92 million] and abundant natural resources that attract Korean firms. Currently, FDIs from Korea to the Philippines are low, but these are expected to rise," Park added.
Park said a representative office in the Philippines was partly meant to give financial and non-financial forms of assistance to Korean firms investing in the country. Non-financial forms of assistance may include technical and sharing of business-related information on the Philippines.
The bank said some of these companies were transferring their plants from China, where the costs of operations were on the rise, to the Philippines.
Some Korean firms now find it expensive to do business in China, prompting them to look for alternative sites for their businesses in Southeast Asia, it added.
Korea Eximbank also noted that the Philippines was poised to get an investment grade within a year or two from either or all of the three major global credit-rating firms, namely, Moody's Investors Service, Standard &Poor's, and Fitch Ratings.
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