A new era in Korea-Philippine relations: K-dramas and demographics

(Part 2)

South Korea has been consistently one of the Philippines’ top trading partners. It is one of the leading markets to which the Philippines exports semiconductors and electronic devices, which constitute 60% of our total exports. South Korea also imports the other major categories of what we sell to other countries, i.e., coconut oil and other agricultural products, as well as mineral products such as nickel ores which are vital materials for Korean manufacturing. In turn, our major imports from South Korea are machinery and transport equipment, steel and other industrial materials, and petrochemicals and electronics.

As a country starving for Foreign Direct Investments (FDIs), the Philippines is especially grateful to South Korean enterprises for being among the largest foreign investors in our country. The leading Korean investors are in manufacturing, energy (power plants, and renewable energy), and infrastructure (transport and roads). Among these investors are the leading lights of Korean industry, e.g., Samsung (electronics and engineering projects), Hyundai (construction, shipbuilding, automotive), and LG (automotive and energy solutions). South Korea is among the top countries that have helped the Philippines to industrialize and adopt modern technology.

It is also a major development partner providing our country with concessional loans and grants through agencies like the Korea International Cooperation Agency (KOICA) and the Economic Development Cooperation Fund.

Korea’s development model is often cited as a template for our own industrial strategy. Other “tiger economies” such as Singapore, Taiwan, and Hong Kong have populations that are too small for them to offer us an industrial strategy with two pillars, i.e., export as well as the domestic markets. But like Taiwan, South Korea has some interesting models for agricultural development such as the Semaul Undong Cooperative Movement which contributed significantly to addressing poverty in the countryside during their early stages of development in the 1960s to 1980s when the Philippines was still considered as the most promising economy to develop in East Asia. It was our complete neglect of the countryside and agricultural development that led to our becoming the “sick man of Asia” by the end of the last century.

I fully agree with Korean Ambassador Lee Sang-hwa when he wrote that the true engine powering the vibrant partnership lies in the dynamic exchange between the peoples of the two nations. South Koreans are the largest group of foreign tourists in the Philippines. Before the COVID-19 pandemic, we attracted over 1.5 million Korean visitors annually. Popular destinations are Boracay, Cebu, and Bohol, with increasing numbers visiting Siargao, Baler, and La Union. There is also a sizable Korean expatriate community in the Philippines, especially in education and business. There is a sufficiently large number of South Koreans in the National Capital Region for them to have their own Catholic parish somewhere in Taguig.

Ambassador Lee referred to a feature of Korean-Philippine relations that is especially meaningful to me. I must admit I have become addicted to K-dramas. Whether it is the most famous series Crash Landing on You or the more recent K-dramas like Made in Korea, Descendants of the Sun, Itaewon Class, Stranger, or Squid Game, I fully support Ambassador Lee’s statement that Korean culture has gained remarkable popularity among Filipinos of all income classes. Like in many countries of the world, the extraordinarily successful dance and singing groups like BTS, EXO, Seventeen, NCT, and Stray Kids among the Korean males and BLACKPINK, Twice, Red Velvet, and ITZY among the females have captured the Filipino audience because of their captivating synchronized dance, strong visuals, and catchy singing. I attribute this spectacular success of Korean culture all over the world primarily to strong government support.

Without being a wet blanket, I must say that Filipinos are equally talented if not more so, compared to the Koreans. We could also have captured global attention if only our government had been as supportive of our talents as the Korean government. I hope that the passage of the law mandating the Government to support the creative industries in the Philippines can help us emulate the global popularity of Korean culture. In fact, I have been suggesting that our two countries can join hands in developing our respective musical, dance, and acting talents so that we will beat all other nations in the entertainment industry. As Ambassador Lee pointed out, events like the Everyone’s K-Pop showcase — starring Filipino singer Gwyn Dorado — have already shown the potential for this Korean-Philippine collaboration in conquering the world entertainment sector.

Another important dimension of Korea-Philippine relations is the role that our two countries can play in strengthening the Strategic Partnership with the ASEAN.

As China and India loom increasingly larger as dominant economies in the Indo-Pacific region, the ASEAN (with 680 million consumers) can serve as a counterbalance to the economic power of these two giants. By partnering with a highly industrialized country like South Korea that can transfer the most advanced technology as well as substantial capital to the ASEAN Economic Community, the 11 ASEAN economies can have sufficient market power to hold their own in negotiating with these two economic giants.

The synergy between the Philippines and South Korea is further enhanced by the demographic complementariness of the two countries. The Philippines still has the youngest population in East Asia, having an average age of 26 years compared to Korea’s 46 years, making South Korea one of the oldest populations in the world. This age is increasing rapidly because of very low fertility rates and high life expectancy. The Philippines can be the source of vital human resources to South Korea, especially in the areas of healthcare and retirement facilities.

In a recent report by Reuters, Korean President Lee Jae Myung was quoted as calling for regional cooperation on demographic challenges. At last year’s Asia-Pacific Economic Cooperation summit, he proposed to hold the group’s first population forum in South Korea this year. During visits to their respective countries, President Lee agreed with Chinese President Xi Jinping and Japanese Prime Minister Sanae Takaichi to seek collaboration on ageing populations.

South Korea’s population of 51.8 million today is expected to shrink by almost a third to 36.2 million by 2072, according to the latest government projection in 2022. Given the unsuccessful attempts of all ageing populations to reverse their respective fertility declines (starting with Singapore in the last century), it is very likely that the Philippines will be the only remaining country to provide workers –— especially health and hospitality workers as well as caregivers — to its ageing neighbors. That is why it is important for both the private sector and the government in the Philippines to work towards keeping its already declining fertility rate as close as possible to the replacement rate of 2.1 babies per fertile woman.

Since the majority of the Philippine population belong to the Roman Catholic Church, the many lay organizations promoting strong family values can do much to emphasize the Catholic doctrine that marriage is primarily oriented towards procreation and the raising of children. It is then hoped that the Catholics in the Philippines can help the considerable Catholic population (about 11 % of total population) in South Korea to overcome the anti-natalist culture prevalent in the developed countries.

Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.

bernardo.villegas@uap.asia