SEOUL -- President Gloria Macapagal-Arroyo Monday night cited the more than 30,000 overseas Filipino workers (OFW) in South Korea for their yearly remittances that reach some $8 billion yearly.

But more than the remittances, the President lauded the OFWs for keeping the Philippine wheels of progress rolling, despite domestic and global nuances.

Before some 2,000 Filipino expatriates who joined the President in the advance celebration of Migrants Day at the Lotte Hotel here, she said OFW remittances have assured continued education for thousands of children, homes for thousands of families, and the boom in tourism.

The President said that in a meeting she had with housing developers before she took off for this South Korean capital, she was informed that OFWs have bought most of middle-class housing units built recently.

She said housing projects provide the biggest multiplier when it comes to jobs. "Kaya maraming salamat doon (Thank you for that)," she added.

She urged the expatriates to convince their Korean friends to visit the Philippines and help push tourism in the country.

The President likewise noted that the some of the money OFWs send to the Philippines are being invested on small and medium enterprises that have helped push national economic growth.

She cited the better-than-expected gross national product that grew 5.6 percent in the first quarter of 2003. This, she said, included the remittances from OFWs.

In the same meeting, the President disclosed executive and legislative moves that would benefit OFWs worldwide. One of these is the recent passage of the Overseas Absentee Voting Law.

She said the government also supported measures to declare tax- free the income of OFWs abroad, to include those in Korea and moves to station health and social workers in missions to help and advise expatriates.

SEOUL, South Korea – President Gloria Macapagal-Arroyo today said the Philippines would spearhead the move for the dismantling of nuclear weapons in the Korean peninsula in the forthcoming ministerial meeting of the Association of Southeast Asian Nations (Asean) this month.

In a press briefing following the bilateral talks between President Macapagal-Arroyo and President Roh Moo-hyun at the Blue House here, Presidential Management Staff (PMS) Head, Secretary Silvestre Afable, said the Filipino leader stressed the importance of the North Korea issue to regional security. Afable and other senior government officials are currently accompanying the President in her state visit to the Republic of Korea from June 2 to 4.

The President informed the South Korean leader that the Philippines will file a resolution in the Asean ministerial meeting on the third week of June seeking the denuclearization of the Korean peninsula.

She said one of the reasons the Philippines is leading this initiative is because it is the nearest Asean member-country to Korea.

During their meeting, both leaders recognized that the denuclearization of the Korean peninsula and the peaceful resolution of the North Korean issue through dialogue are essential to the peace not only of Northeast Asia but of the world.

In her speech later before Korean business leaders, the President said the Philippines is "deeply concerned about peace in the Korean peninsula, particularly a nuclear-free (Korean) peninsula."

"We are prepared to do our part to resolve this issue, which is of great importance not only for the region but also for the world," the President said.

During their bilateral talks, Mrs. Macapagal-Arroyo and South Korean President Roh agreed to resolve the denuclearization issue through dialogue and peaceful means.

The two leaders also agreed on three strategic approaches -- international pressure, security guarantees for North Korea and economic assistance for that country.

Roh said the South Korea has been providing humanitarian assistance to North Korea. On the other hand, the Philippines, for humanitarian reasons, was involved as a transit point for defecting North Korean nationals.

President Gloria Macapagal-Arroyo today asked South Korea to expand its imports from the Philippines to balance out the trade gap between the two countries.

During their bilateral talks at the Blue House in Seoul this morning, the President and South Korean President Roh Moo-hyun agreed to make efforts to lower trade barriers and stimulate investment in both countries.

The President asked South Korea to expand its imports especially in the fresh and processed tropical fruits.

She asked for further tariff reduction for Philippine bananas which, she said, would greatly impact on the eradication of poverty in Mindanao.

She also sought tariff reductions for refined copper cathodes from the Philippines in order to narrow down the disparity arising from the zero tariff that South Korea will be extending to Chile.

Roh assured President Macapagal-Arroyo that his Cabinet would consider and act upon her requests.

Roh also gave a positive response to the President’s request for South Korea to extend assistance for the Laguindingin Airport in Cagayan de Oro City, and the Metro Manila South Rail project, which is vital to the integration of the Metro Rail system.

SEOUL (Via PLDT)—Three important government agreements were signed today between the Philippines and South Korea on the second day of President Gloria Macapagal-Arroyo’s state visit here.

Signed following the expanded bilateral meeting between the President and South Korean President Roh Moo-hyun at the Blue House were:

1. A treaty on mutual legal assistance on criminal matters;
2. A $10-million grant for the establishment of an Information Technology training center in Luzon and a vocational training center in Davao City; and
3. An agreement for the commitment of an Economic and Development Cooperation Funds (EDCF)

President Macapagal-Arroyo expressed satisfaction over the successful conclusion of the agreements, particularly the treaty on mutual legal assistance on criminal matters, citing its importance in facilitating cooperation in law enforcement between two countries.

The Mutual Legal Assistance on Criminal Matters Treaty aims to improve the effectiveness of both countries in the prevention, investigation, prosecution, and suppression of crime through cooperation and mutual legal assistance in criminal matters.

The treaty will compliment the existing Extradition Treaty between the Philippines and South Korea was signed in 1994.

She also expressed appreciation for the $10-million grant assistance for the establishment of the IT training center in Luzon and the vocational training center in Davao which she said would promote entrepreneurship, create more job opportunities and improve the quality of Philippine labor force.

Earlier at 10 this morning (9 a.m. Manila time), the President and the First Gentleman, Jose Miguel Arroyo were officially welcomed at the Blue House amidst flag-waiving, cheering elementary school children and stern-looking Royal Guards in colorful traditional uniform reminiscent of ancient Korea.

Dressed in a two-piece cream suit, the President trooped the line with President Roh in the sprawling lawn fronting the royal villa which Koreans call "The Most Blessed Place on Earth" or Cheong Wa Dae.

To the north of Cheong Wa Dae is Mt. Bugaksan, flanked by two mountains, Naksan symbolizing the Blue Dragon on the left and Inwangsan, symbolizing the White Tiger, on the right. To the South is Namsan, the protective mountain of the capital and, in front clear, water flows through the Cheonggyecheon stream and the Han-gang river.

Cheong Wa Dae consists of the main office building, the official Presidential residence, Yeongbin-gwan or guest house, the Chunchugwan press hall and the secretariat buildings.

President Macapagal-Arroyo broke tradition when, instead of going back straight to the Blue House after the review, she approached the cheering schoolchildren and shook hands with them.

President Roh and Madam Kwon Yang Sook then ushered the Chief Executive and the First Gentleman to the Audience Room of the Blue House where she reiterated Philippine support to the peaceful resolution of the North Korean issue and the long-standing partnership between Seoul and Manila.

The two leaders also dwelt on defense, security and economic cooperation, welfare of Filipino workers in Korea and cooperation in the reconstruction of Iraq.

SEOUL – President Gloria Macapagal-Arroyo today cited the Korea Electric Power Corporation (KEPCO) "for considering to set up a power plant in the Philippines."

The President witnessed the signing of an agreement whereby KEPCO would build a $150-million (P7.9 billion) 100-megawatt (MW) coal-powered plant in the town of Antique starting April 2004.

Energy Secretary Vicente Perez and KEPCO president Kang Dong-suk signed the agreement at the Shilla Hotel.

"This underscores government efforts to extend all the necessary assistance and support to ensure smooth operations of KEPCO’s investments in the Philippines," the President said.

KEPCO, which has been in the Philippines for several years, built the Ilijan power plant in Batangas and another power plant in Rizal.

This also emphasized government moves to reduce power costs in the area, the President added.

Secretary Perez said the signing assured that Panay Island would no longer experience electricity shortages since the KEPCO power plant could supply half of Panay’s power needs.

Power demand in Panay is expected to increase to 190 MW in 2003 and 200 MW in 2005.

"We have really power shortage in that island, that is why we invited investors to put up power plants there," Perez said.

President Macapagal-Arroyo earlier said that aside from the Visayas, Mindanao might have a serious power shortage by 2006, and Luzon in 2008.

Citing studies from the Asian Development Bank, she said the Philippines needed more than 6,000 MW of generating capacity over the next 10 years.

She added that private investments would address the shortage permanently.

Meanwhile, KEPCO said the signing of the agreement with the Philippines’ Department of Energy came on the heels of a memorandum of understanding signed on April 1 between KEPCO and the local government of Panay.

SEOUL (via PLDT) – President Gloria Macapagal-Arroyo today witnessed the signing between Philippine and Korean business officials of at least four high-impact trade and development agreements on the second day of her state visit here.

Signed following business calls made by representatives of the Korea Electric Power Corporation (KEPCO) and Daewoo International, among others, were:

• The construction by KEPCO of an initial $150-million 100-megawatt (MW) CFBC boiler coal-fired load power plant in Antique, Panay Island to address the power deficiency in the area, with an option of upgrading the facility in the Visayas grid to 400 MW.

• A P1-billion joint venture project between Daewoo Engineering and Construction Company Limited and Empire East Land Holdings Inc. on property development in Barangay San Andres, Cainta, Rizal.

• A memorandum of understanding (MOU) between PL Global Company Limited and Philippine National Oil Company to explore the benefits of developing an estimated $95-million 32 MW and 29 MW hydroelectric power projects at Villa Siga and Timbaban, respectively, in Western Visayas. The projects will open jobs for 855 people.

• An MOU between Federation of Filipino-Chinese Chamber of Commerce of Industry and the Korea Chamber of Industry to enhance economic relations between the two organizations.

The President also witnessed the signing of an MOU on cooperation in the field of energy between Energy Secretary Vicente Perez and Korean Commerce, Industry and Energy Minister Yoon Jin-Shik.

The MOU sought to strengthen the exchange of information on energy policies and procedures, execution of joint projects to assist business and organization; and collaboration on research and development.

Meanwhile, Trade Undersecretary Mike Haresco has disclosed that Korean investors remained keen on putting in their money in the Philippines, despite a Japanese envoy's unsavory remarks.

"I think, these (remarks) will not affect the perception of Korean businessmen in the Philippines," Haresco told Filipino reporters covering the three-day state visit of President Gloria Macapagal-Arroyo here.

Haresco said more Korean entrepreneurs have been doing business in Mindanao despite the peace and order problem there.

"There are such kind of problems around the world," he said.

He added that several Korean private firms have been expected to commit additional investments in the Philippines during the President’s visit.

The investments included the $150-million Korea Electric Power Corporation’s 100-megawatt power plant in the Visayas and the expansion plan of the Asiana Airline.

"Asiana (Airline) is going to inform the President about its intention to service Seoul-Clark three times a week initially," he said.

Haresco said the Daewoo Engineering and Hanjin Heavy Industries and Construction Company Limited have also planned to shorten the construction period of their Light Rail Transit (LRT) line projects in the Philippines.

He added that the country’s tourism would not be affected by the negative impressions made by Japanese Ambassador to Manila Kojiro Takano.

"It does not affect the flow of Korean tourists in the Philippines because their embassy has not issued any advisory prohibiting them to visit the country," he said.

Data showed a total of 288,468 Koreans visited the Philippines in 2002, up by 38.7 percent over the 207,957 visitor figures for 2001.

Foreign ministers from the Organization of Islamic Conference (OIC) Committee of Eight will visit the Philippines to assess the implementation of the 1996 Government of the Republic of the Philippines-Moro National Liberation Front (GRP-MNLF) peace agreement.

Presidential Adviser on the Peace Process Secretary Eduardo Ermita said the visit might happen on the third week of July or first week of August.

He said the development came after meetings by the Philippine delegation under Foreign Affairs Secretary Blas Ople with OIC officials during the 30^th Islamic Conference in Tehran, Iran from May 28 to 31.

Ermita reported about the OIC officials’ visit to President Gloria Macapagal-Arroyo before she left the country for a state visit to South Korea and a working visit to Japan.

"It is significant to note that 29 years from 1974, since the OIC took note of the plight of our Muslim brothers in the south and the MNLF became an agenda in the OIC, the Philippine government merited an invitation from host Iran," he said.

"I would like to tell you that Secretary Ople, our delegation, was very well received by the different foreign ministers, including the Secretary General with whom bilateral meetings were held," he added in a press briefing in Malacanang.

Ermita said that prior to the en banc meeting of the Committee of Eight on May 29, Secretary Ople submitted an official letter to the OIC Secretary General mentioning the official application of the Philippines for an observer status in the influential Islamic body.

He said the visit of the foreign ministers to the Philippines could bolster government chances of getting the observer status before the OIC summit scheduled in Kuala Lumpur, Malaysia in October, 2003.

Among the foreign ministers that Secretary Ople met during the en banc meeting were from Indonesia, which chairs the committee, Bangladesh, Malaysia, Kingdom of Saudi Arabia, Brunei, Senegal and Libya.

Ermita said Ople informed the foreign ministers about the substantial accomplishments of the government in implementing the 1996 GRP-MNLF agreement.

He said most of the accomplishments were in the political and military- police aspects of the pact.

They already know that the new Autonomous Region in Muslim Mindanao (ARMM) is in place under RA 9054, the law that put in place the 1996 agreement, he added.

Dr. Parouk Hussin, the MNLF senior central committee member, had been elected as governor of the regional government.

Ermita added that Ople also reported to the OIC the complete implementation of the integration of MNLF nominees into the Armed Forces of the Philippines and to the Philippine National Police.

He noted that last year, only 90 percent of MNLF integrees were accepted to the AFP and about 80 to 83 percent to the PNP.

To date, the government had completed the integration with 5,750 accepted into the AFP and 1,750 into the PNP.

The Ople delegation also reported to the OIC on the significant number of Muslims within and outside the ARMM appointed by the President to responsible national and regional offices.

Two significant appointments included Simeon Datumanong, Secretary of the Department of Justice, and Nur Jaafar, Presidential Adviser on Muslim Concerns. Another Muslim was appointed to the Court of Appeals.

SEOUL -- President Gloria Macapagal-Arroyo today called on Korean businessmen to help the country address a $1.2-billion trade imbalance between the Philippines and South Korea.

The President also encouraged Korean businessmen to establish production bases and regional headquarters in the country.

In a speech before four major Korean business groups at the Seoul Hilton Hotel, the President said that while Korean-Philippine trade "has grown fourfold to $4 billion," the total imports from South Korea exceeded Philippine exports by $1.2 billion.

She noted that Philippine exports to South Korea grew by 28 percent. The exports consisted of 20 product categories, 11 of them related to electronics and only two – bananas and prawns – related to agriculture.

"We hope, therefore, that you can help us address this gap," she said.

She added that the Philippines has been a world exporter of fresh and processed tropical fruits like mango, lemon or calamansi, and coconut, among others.

The country also exports world-class processed food like ice cream, biscuits and noodles; marine products, garments and furniture; and foundry materials, she noted.

The President said a significant potential exists in the Philippines for Korean investments.

She said the country has sought investments in energy and power; animation; regional Information Technology service 24 hours a day, seven days a week; customer relations management; call centers; global revenue accounting and other business process outsourcing, software and online games development.

She took time to emulate the strengths of the Philippines and its 29-million strong talented, skilled and design-oriented labor force who are 94-percent literate "with a fast-learning curve and low attrition rate."

She likewise laid on the table the benefits Korean businessmen could gain for putting their capital into the country, among which are the 100-percent equity allowed foreign investors, the free and unrestricted repatriation of capital, a fully liberalized foreign exchange system, a range of financial and administrative incentives and others.