September 10, 2025
MANILA – South Korean President Lee Jae-myung has halted the implementation of a 700-billion won (₱28.7 billion) infrastructure loan to the Philippines, citing its “potential for corruption.”
This development follows a major corruption scandal in the Philippines involving flood control infrastructure, which has prompted intense House and Senate investigations into suspected collusion between politicians and contractors to embezzle funds intended for projects mitigating river overflows during strong and often deadly typhoons.
Lee made the announcement on Facebook on Tuesday, following an exclusive report of Korea’s center-left daily, The Hankyoreh.
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“The project, which was deemed a substandard project with potential for corruption, was immediately ordered to cease proceedings,” reads the translation of Lee’s post.
Lee further said the move is “significant” as it “prevented the unnecessary waste of a staggering 700 billion won in taxpayer money and preemptively prevented the risk of corruption and mismanagement.”
The Hankyoreh reported on Monday that the loan under Seoul’s Economic Development Cooperation Fund (EDCF) was “belatedly resumed” despite being previously flagged by the country’s Ministry of Strategy and Finance, which deemed it a “poorly performing project.”
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The daily reported that the EDCF loan was for President Ferdinand Marcos Jr.’s program to build some 350 modular bridges in rural areas nationwide.
“The Ministry of Strategy and Finance also confirmed suspicions that corrupt individuals, a characteristic of the Philippines’ political and business collusion, were involved in the project’s poor performance,” the Hankyoreh said in its report.
Last June, the Department of Agriculture announced it is undertaking a P27.7-billion program to build 300 modular steel panel bridges starting 2026 up to 2029.
These will be strategically placed across 52 provinces in 15 regions, focusing on areas with high agricultural potential but limited road access, according to the DA.