President Lee Jae-myung made a state visit to the Philippines on June 3, marking the 77th anniversary of diplomatic relations between the two countries, and agreed to participate in the approximately 49 trillion won ($35 billion) Philippine military modernization project. Korea plans to formalize defense cooperation centered on submarines while expanding strategic collaboration across future industries including nuclear power, critical minerals, and artificial intelligence.
President Lee held a summit with President Ferdinand Romualdez Marcos Jr. at Malacañang Palace in Manila and signed 10 agreements and memoranda of understanding covering digital and cultural cooperation, nuclear power, and minerals.
"We agreed to further strengthen cooperation in strategic industries including infrastructure and defense," President Lee said at a joint press conference. "Based on the 'Implementation Arrangement on Defense Procurement,' we will support Korean defense companies to actively participate in the Philippine military modernization project."
The remarks are interpreted as targeting the Philippines' "Horizon Project," a military modernization initiative worth approximately 49 trillion won.
Through the implementation arrangement, the two countries expanded the scope of companies eligible for sole-source contracts in defense exports and supplemented provisions for weapons system maintenance and follow-on logistics support. An institutional framework for financial support was also established. Analysts say this significantly increases the likelihood of securing orders for major weapons systems including submarines.
President Lee also outlined concrete plans for nuclear power cooperation. Referring to the "Bataan Nuclear Power Plant Restart Feasibility Study" and the "MOU on New Nuclear Power Project Cooperation," he said, "Our two countries will establish themselves as optimal partners in nuclear power cooperation."