South Korean president stops loan for DAR’s ‘PBBM Bridges’ project over corruption concerns 

MANILA, Philippines — The President of South Korea on Tuesday, September 9 ordered an immediate stop to a loan for the Philippines, which would have funded a Department of Agrarian Reform (DAR) project named after Philippine President Ferdinand Marcos Jr.

South Korean President Lee Jae-Myung, who was elected to the post in June 2025, made the announcement on his official Facebook page following an investigative report by a Korean publication that pointed out earlier concerns over corruption and misuse of the funding.

In his post, Lee pointed out that the project had not commenced, so funding from the Foreign Economic Cooperation Fund (EDCF) had been untouched. The EDCF is one institution through which Korea provides Official Development Assistance to other countries.

Lee, in his post, praised the investigative report, citing how it avoided the “risk” of corruption and the use of Korean taxpayer’s money.

(Editor’s note: Translations from Korean to English were made via AI tools.)

The project, totalling some 700 billion Korean won, was intended for the “PBBM Rural Modular Bridge Project” and unilaterally sought by the Philippine government, according to the Korean publication Hankyoreh.

The Philippines’ Department of Finance (DOF), in a statement on Wednesday, September 10 denied that the loan was sought unilaterally, and that it existed.

“Nevertheless, we reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” said the DOF.

In a subsequent statement, the DOF said that while it first proposed funding from South Korea, it “decided to halt previous discussions last year due to non-alignment on scope and other key technical specifications.”

“The government, as early as the last quarter of 2024, decided to look for other bilateral partners who can implement the full scope of the project. Hence, there is no existing loan for the said project with South Korea,” said the DOF. “Advanced negotiations” are now ongoing with the government of France.

Flagged by the Senate

Back in November 2024, the DAR defended its proposed PBBM Bridges project, which would have cost P28.3 billion or just a little over 700 billion Korean won.

Hankyoreh reported that the LCS Group, owned by former Ilocos Sur governor Chavit Singson, an ally of President Marcos, was supposed to “participate in the project.”

The project had been questioned before the Senate during budget deliberations for the current 2025 budget of the DAR.

According to a GMA News Online report from those deliberations, the “PBBM Bridges” project would be funded through P23 billion in foreign loans and P5 billion from the Philippines’ coffers.

The DAR’s description of the project matches Hankyoreh’s reporting — that the project would involve the construction of some 350 modular bridges across the country.

DAR Undersecretary for Foreign Assistance and Special Projects Office Jesry Palmares told the Senate in October 2024 that the project was “approved by the NEDA board last November and is currently being negotiated with Korean Exim Bank,” according to the same GMA News report.

Former senator Francis Tolentino had questioned the DAR project, citing a former bridges project that was funded through the United Kingdom.

For the most part, Hankyoreh’s report honed in not only on fears of corruption in the Philippines, but on internal pressures in Korean politics.

Based on the report, this is the timeline of events:

November 2023:The DOF submits an application before the Korean government unilaterally. The DOF has denied it was unilateral.

December 2023: DAR Secretary Conrado Estrella III and an unamed official (a vice minister, according to Hankyoreh) fly to Korea to meet with the Minister of Economy and Finance. They also meet with Representative Kim Hak-yong of the People Power Party who was then a member of the National Assembly’s Land, Infrastructure, and Transport Committee, and officials of the Export-Import Bank of Korea, according to the same report. The bank manages the EDCF fund.

Also in December 2023: Chavit Singson visits Korea, according to a post on his own Instagram account. His caption for the post reads: “Hon. Luis Chavit Singson’s South Korea trip on December 4- 7 to meet with different companies with special interest in E-Jeepneys and fiberglass rebar that will be brought to the Philippines to improve on renewable energy sources and more efficient construction technology for our country.”

February 2024: Korea’s Ministry of Strategy and Finance says EDCF support would be “difficult, citing the project’s low probability of success” after it visited the Philippines in December 2023. During that visit, “no [Korean] companies expressed interest” in the project, according to Hankyoreh.

Also in February 2024: The report notes that Kwon Seong-dong makes a “sudden appearance” in the project. The lawmaker reportedly contacts Minister of Strategy and Finance Choi Sang-mok himself and lobbies for it pushing through, reportedly citing the chance to “secure nickel mining rights from the Philippine government in return.”

Kwon belongs to the People Power Party and was a supporter of since removed Korean president Yoon Suk-yeol.

April 2024: The Philippines is notified of the finance ministry’s decision. The report notes that the ministry also concluded that there would be “no problems in the relationship between the Korean government and the Philippine government” even if the loan request is declined, citing other EDCF projects that were already ongoing in the Philippines.

May 2024: Kwon reportedly lobbies again for the project, and meets with the “Philippine Department of Agrarian Reform,” although Hankyoreh does not specify who these officials are. A “third round of pressure” is placed on the finance ministry, according to Hankyoreh.

October 2024: The Ministry of Strategy and Finance eventually approves the loan, because of Kwon’s “continued pressure.” In the same month, former senator Tolentino questions the project, again citing an old effort funded by another government.

Lee’s decision comes just as alleged corruption in infrastructure projects — specifically flood control under the Department of Public Works and Highways — are under investigation by both the executive and legislative branches of government.

In the Philippines, there’s been an outcry over the billions reportedly stolen from public funds, leading to substandard or non-existent flood control projects.

Bilateral ties between Manila and Seoul have grown closer in recent years. Under Marcos, ties were elevated to a strategic partnership. – Rappler.com