Are you curious about what's driving a surge in investments from South Korea to the Philippines? It's a fascinating story of tax incentives and strategic trade agreements. Let's dive in!
On November 3, 2025, a Philippine trade official highlighted the impact of the tax incentives law and the new Free Trade Agreement (FTA) with South Korea on attracting fresh investments.
Philippine Economic Zone Authority (PEZA) Director General Tereso Panga, who was part of President Ferdinand R. Marcos Jr.’s delegation at the Asia Pacific Economic Cooperation (APEC) Summit and Related Summits in South Korea from October 31 to November 1, 2025, shared key insights with Korean investors. He explained how these policies are creating a favorable environment for businesses.
During the trip, Panga formalized a Registration Agreement between PEZA and the Samsung Electro-Mechanics Philippines Corporation (SEMPHIL) for a substantial PHP50.7-billion project. This marks the first major project to benefit from the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and the new FTA with South Korea.
Panga emphasized that once registered with PEZA, business enterprises tend to stay and expand their operations year after year. This suggests a strong level of satisfaction and success among investors.
He noted that the CREATE MORE incentives, coupled with the new FTA, are expected to boost trade and investment ties. This encourages more Korean industries to follow SEMPHIL's lead.
But here's where it gets interesting... Panga highlighted that these policy instruments show how PEZA's service excellence aligns with the Marcos administration's commitment to a supportive, predictable, and innovation-focused investment climate.
Last week, PEZA announced a remarkable 41.72-percent increase in investment approvals during the first 10 months of the year, totaling PHP175.37 billion. These investments come from various countries, including the Philippines, Japan, the Cayman Islands, South Korea, China, and the US.
And this is the part most people miss... The success of these initiatives hinges on the government's ability to maintain a stable and attractive investment environment. Do you think these tax incentives and trade agreements are enough to ensure long-term investment growth? What other factors do you believe are crucial for attracting foreign investment? Share your thoughts in the comments below!
