S. Korea Halts ₱28.7-B Loan to Philippines Amid Corruption Concerns 

South Korean President Lee Jae-myung

S. Korea Halts ₱28.7-B Loan to Philippines Amid Corruption Concerns 

By Bing Jabadan – TheNationWeek.Com | September 11, 2025

MANILA, Philippines – South Korea has suspended a 700-billion won (₱28.7 billion) infrastructure loan to the Philippines, citing significant concerns about potential corruption linked to a rural bridge project championed by President Ferdinand Marcos Jr.

The decision, announced by South Korean President Lee Jae-myung, follows mounting scrutiny in the Philippines over alleged embezzlement of funds allocated for flood control infrastructure.

Lee Jae-myung publicly stated his decision, referencing an investigative report by Hankyoreh21, a publication affiliated with the respected South Korean daily, The Hankyoreh, which highlighted the risks associated with the loan.

“I ordered the immediate suspension of all procedures related to the project,” Lee stated, emphasizing that no funds had yet been disbursed.

The terminated loan was earmarked for the “PBBM (President Bongbong Marcos Jr.) Rural Modular Bridge Project,” an initiative to construct modular bridges across 350 locations nationwide by 2028.

The Hankyoreh21 report alleged that the project, a high priority for the Marcos administration, had been flagged internally by South Korea’s Ministry of Strategy and Finance as a “poorly performing project” with suspected involvement of corrupt individuals exploiting the Philippines’ political and business landscape.

The suspension comes amid ongoing investigations into alleged corruption within flood control projects.

These investigations center on accusations of collusion between politicians and contractors to siphon funds intended for mitigating the impact of typhoons.

The convergence of these factors has raised serious concerns about the transparency and accountability of infrastructure spending in the Philippines.

While the Philippine Department of Finance (DOF) initially stated that “there is no such loan,” it later affirmed the government’s commitment to transparency and accountability in its dealings with bilateral partners.

The DOF has indicated that France may be a potential alternative source of funding for the Marcos administration’s rural bridge initiative.