Conflicting statements from Seoul and Manila have fueled confusion after South Korean President Lee Jae-myung suspended what he described as a ₩700 billion (₱28.8 billion) infrastructure loan project for the Philippines, citing possible fraud.
In a Facebook post, Lee said the project to construct steel modular bridges in 350 remote areas of the Philippines may have been “fraudulent” and vulnerable to corruption. He cited a South Korean media report claiming the initiative under the Economic Development Cooperation Fund (EDCF) proceeded despite multiple warnings.
The loan, according to Lee, was supposed to fund 210 bridges in Luzon, 88 in the Visayas, and 53 in Mindanao by 2028. He said the suspension was meant to protect ₩700 billion in South Korean taxpayers’ money.
The Philippine Department of Finance (DOF), however, disputed the claim. In a statement, the agency clarified that no such loan arrangement exists between the Philippines and South Korea. The DOF added that the two countries remain bilateral partners despite the issue.
The differing accounts surfaced as the Philippines faces separate controversy over alleged ghost flood-control projects, further heightening concerns about corruption in infrastructure spending.
South Korea framed the suspension as a safeguard against potential misuse of funds, but the Philippine government’s denial has left uncertainty over the project’s actual status. Both sides have yet to confirm whether preliminary talks were held or if the proposal advanced beyond planning.
