The Government of South Korea has declared that it will increase the ceiling on its low-interest rate loans to the Philippines by three times over the next five years. Under an agreement between South Korea and the Philippines, the Economic Development Cooperation Fund (EDCF) will be increased by USD3 billion in 2022-2026, up from USD1 billion allocated for 2017-2022.

The Government of South Korea had launched the EDCF program in 1987 to assist and fund other developing countries finance basic infrastructure projects. The expansion of the EDFC loans comes as the Philippines is positioned as a key strategic partner in South Korea’s New Southern Policy for boosting collaboration in the green energy, digital, and health-care sectors.