South Korean President Lee Jae-myung has blocked the release of a 700-billion won (₱28.7 billion) loan meant for Philippine infrastructure projects, citing its “potential for corruption.”
The decision comes as Manila grapples with a widening corruption scandal involving flood control projects, now under intense scrutiny by both chambers of Congress for alleged collusion between politicians and contractors to pocket public funds.
Lee made the announcement through Facebook on Tuesday, following an exclusive report by Korean daily The Hankyoreh.
“The project, which was deemed a substandard project with potential for corruption, was immediately ordered to cease proceedings,” Lee wrote.
He stressed that the move was crucial, saying it “prevented the unnecessary waste of a staggering 700 billion won in taxpayer money and preemptively prevented the risk of corruption and mismanagement.”
According to The Hankyoreh, the loan was tied to Seoul’s Economic Development Cooperation Fund (EDCF) and intended to support President Ferdinand Marcos Jr.’s program to build around 350 modular bridges in rural areas. The paper reported that South Korea’s Ministry of Strategy and Finance had earlier flagged the loan as a “poorly performing project” and confirmed suspicions of corrupt involvement, particularly linked to entrenched political-business collusion in the Philippines.
In June, the Department of Agriculture announced a separate ₱27.7-billion plan to construct 300 modular steel panel bridges across 52 provinces from 2026 to 2029. Officials said the bridges would target farming areas with poor road access to improve transport and connectivity.
