SK president halts P28B loan to PH amid corruption concerns

South Korean President Lee Jae-myung has ordered an immediate halt to a proposed 700-billion won (approximately P28 billion) infrastructure loan to the Philippines, citing corruption concerns.

The loan was intended for the construction of 350 bridges across the country through South Korea's Economic Development Cooperation Fund (EDCF).

President Lee stated that the project had not yet commenced, meaning no funds had been disbursed, thus preventing potential corruption and waste of taxpayer money.

This action by South Korea occurs amidst a corruption scandal in the Philippines involving contractors, government officials, and lawmakers.

The Department of Finance (DOF) has categorically denied the existence of any such loan agreement between the Philippines and South Korea.

Senator Sherwin Gatchalian called the supposed loan cancellation "embarrassing" for the Philippines and expressed concern that it could impact the country's infrastructure development.