MANILA: South Korean defence contractors are looking at more deals and investments in the Philippines to support the South-East Asian nation’s military modernisation amid longstanding geopolitical tensions in the South China Sea.
Korea Aerospace Industries Ltd is planning to offer its KF-21 fighter aircraft that’s under development as well as helicopters to the Philippines, Senior Executive Vice President Cha Jae Byoung who’s in charge of the aircraft business, said on Wednesday (March 4) on the sidelines of the Philippines-Korea Business Forum in Manila.
The aerospace firm will start the delivery of FA-50 light combat aircraft to the Philippines in 2028, Cha said, following a US$700 million deal involving 12 jets announced in June.
"The Philippines is one of our top customers, one of the first air forces to operate our FA-50s in the world,” he said.
HD Hyundai Heavy Industries Co is also investing more. "The nation holds an irreplaceable position as the frontline state for regional maritime security,” said Lee In-ho, senior vice president at HD Hyundai.
"On the maintenance, repair, and overhaul standpoint, we will keep investing.”
South Korean defence contractors, buoyed by booming arms sales fuelled by the wars in Ukraine and the Middle East, are leveraging that momentum to deepen ties with the Philippines.
Their expansion underscores Seoul’s ambition to cement its status as a reliable, fast-growing alternative to traditional Western suppliers while tapping rising Indo-Pacific demand.
Manila is modernising its ageing air and naval assets, some tracing back to World War II, as it continues to be embroiled in a longstanding maritime dispute with Beijing in the South China Sea, a resource-rich waterway.
HD Hyundai, a Philippine Navy contractor and sub-lessee in the Subic shipyard north of the country’s capital, is ready to offer more equipment if there are demand signals, Lee added.
It’s also looking at servicing commercial vessels, outside of naval assets including the US Navy, and eventually frigate construction for its Philippine operations, he adds.
"Hopefully we can serve more on the military side not just the ship but inside the ship, the weapons systems, and shipyard construction as well if there is an opportunity,” Lee said.
The business executives are part of the delegation of South Korean President Lee Jae Myung who visited Manila.
Lee met with Philippine President Ferdinand Marcos Jr and both leaders pledged to work together on defce, infrastructure and shipbuilding amid regional tensions and conflict in the Middle East. - Bloomberg
