Philippine exports to South Korea are expected to recover in the second half of 2025, signaling renewed momentum in bilateral trade and growing confidence in the Philippines–South Korea Free Trade Agreement (FTA).
Despite a temporary dip in export figures earlier this year, the improving business climate in South Korea is creating favorable conditions for a trade revival. Economic analysts highlight the strong potential of the FTA to unlock long-term gains for Philippine exporters as both countries reaffirm their commitment to deepening economic cooperation.
Recent data from the Philippine Statistics Authority showed that exports to South Korea reached $1 billion from January to April. While this reflects a short-term decline, trade experts are optimistic about a rebound as the South Korean economy stabilizes and demand picks up.
Michael Ricafort, Chief Economist at Rizal Commercial Banking Corp., emphasized that the FTA continues to be a valuable tool for enhancing the country’s trade position. “With the political and economic landscape in South Korea now stabilizing, Philippine exporters are well-positioned to regain competitiveness and expand their presence in the market,” he said.
The FTA reduces trade barriers and opens doors for a wide range of Philippine products, including bananas, processed food, electronics, garments, machinery, and transport equipment. This provides an opportunity for exporters to explore new sectors and strengthen supply chain integration.
John Paolo Rivera of the Philippine Institute for Development Studies echoed the positive outlook, noting that “while FTAs require adjustment periods, the benefits are clear when coupled with targeted strategies, improved compliance, and greater market engagement.”
The government’s support for micro, small, and medium enterprises (MSMEs) and its active participation in regional trade partnerships are also seen as critical enablers in maximizing the FTA’s impact.
With focused efforts and continued collaboration, the Philippines is poised to strengthen its trade relationship with South Korea and achieve sustainable growth in exports, contributing to the broader goals of regional integration and economic resilience.
#ITCNewsUpdates #BreakingNews #TradeNews #ExportUpdate #NewsUpdate #GlobalTrade #PositiveTradeGrowth