Suspended Korean loan does not exist - PH

Metro Manila, Philippines - There is no multibillion-peso loan from South Korea, therefore, there is nothing to cancel, the government said on Wednesday, Sept. 10, in response to an announcement from the South Korean president.

In a statement, the Department of Finance (DOF) denied the existence of a ₱28.8-billion ($510-million) infrastructure loan. South Korean President Lee Jae-myung announced that he was halting the funding over corruption concerns.

“With regard to the supposed PHP28 billion official development assistance (ODA) loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the DOF said.

The agency assured bilateral partners that the Philippine government remains committed to transparency and accountability.

Lee said in a Facebook post that the loan, reported by Korea’s Hankyoreh newspaper, was suspended because of its “potential for corruption.” He said the decision stopped the “unnecessary waste” of 700 billion won in taxpayer money and blocked risks of mismanagement.

According to Hankyoreh, the loan was tied to President Ferdinand Marcos Jr.’s plan to build around 350 modular bridges in rural areas nationwide. The Seoul Finance Ministry had earlier flagged the initiative as a “poorly performing project” and raised suspicions that corruption and political-business collusion were behind its shortcomings.

NewsWatch Plus is reaching out to the Korean embassy in Manila for comment.