The Department of Foreign Affairs (DFA) is in talks with South Korea to clarify President Lee Jae-myung's statement regarding the alleged suspension of a loan for a bridge project in the Philippines.
According to the DFA, the Department of Finance (DOF) has already issued an explanation that there are no more pending loan applications in Korea for the P28 billion project, which aims to build 350 permanent steel bridges nationwide before the end of 2028.
The President of Korea issued a post on his Facebook page where he said the loan was stopped due to reports of possible corruption and allegedly due to political pressure.
Officials in Manila have clarified that talks about the loan have been stalled for a long time. According to DAR Secretary Conrado Estrella III, there was only an exploratory meeting in December 2023 but it did not result in a loan application.
The DOF also confirmed that the Philippines stopped seeking funding from Korea in 2024. Currently, the government is studying France as a possible funder of the project.
