KOTRA targets Philippine infrastructure market, eyes AI and smart city opportunities

As the Philippines expands its investment focus beyond traditional infrastructure such as roads and ports into AI, data centers and smart cities, South Korean companies are moving to identify new business opportunities in the market.

Korea Trade-Investment Promotion Agency (KOTRA) announced Wednesday that it held the "2026 Korea-ASEAN Project Plaza (KAPP)" in Manila on Tuesday, in partnership with the Ministry of Trade, Industry and Energy, the Ministry of Land, Infrastructure and Transport, and the South Korean Embassy in the Philippines.

Now in its ninth year, the event drew 40 South Korean companies and institutions active in infrastructure, plant engineering, energy and smart cities. Representatives from Philippine government procurement agencies, local firms and international organizations including the Asian Development Bank (ADB) also attended to discuss investment plans and cooperation opportunities for major development projects.

The event was organized to help South Korean companies expand their foothold in the Philippines in line with the country's large-scale infrastructure development and advanced industry promotion policies. KOTRA organized the program in cooperation with the Korea Plant Industry Association and the Electronics and Telecommunications Research Institute (ETRI).

The Philippines has been broadening its development scope, with a growing emphasis on advanced industries. A flagship initiative is the Luzon Economic Corridor (LEC), a development framework launched in 2024 by the Philippines, the United States and Japan. Its core aim is to build out transportation and logistics networks and industrial facilities along an economic axis linking Subic, Clark, Manila and Batangas. This year, eight additional countries, including South Korea, joined as cooperative partners.

Particularly notable is a large-scale development push underway in New Clark City, about 100 kilometers north of Manila, aimed at fostering advanced manufacturing. The plan calls for creating a roughly 1,600-hectare advanced manufacturing hub linked to "Pax Silica," a US-led initiative for supply chain cooperation in advanced industries.

Investment in AI infrastructure is also growing. Through its "AI+ Infrastructure Master Plan" announced last month, the Philippine government set a target of expanding AI data center capacity to 1.5 gigawatts by 2033 and driving $34.4 billion in total investment from both the public and private sectors. The move signals a broadening of development demand beyond transportation and energy into data centers and telecommunications networks.

Discussions on digital cooperation between South Korea and the Philippines are also continuing. At a global ICT leadership forum held in Seoul late last month, the Philippine government identified AI data centers and digital twins for disaster response as priority areas for cooperation with South Korea.

A morning forum at the event covered investment opportunities in New Clark City and the Luzon Economic Corridor, ADB project bidding and procurement procedures, flood management and next-generation urban planning. Participants also discussed the procurement requirements of major Philippine infrastructure projects and the sectors in which South Korean companies could participate.

Korea Water Resources Corporation presented cooperation proposals using intelligent integrated water management technology. Korea Electric Power Corporation introduced energy innovation technologies and new business initiatives, while RMS Platform outlined the potential for applying its AI-based integrated urban management system locally.

In the afternoon, 20 South Korean companies participating in the plant and smart city delegation held more than 100 one-on-one business consultations with 45 Philippine project owners and buyers. The participating firms explored cooperation possibilities centered on New Clark City development and infrastructure projects related to the Luzon Economic Corridor.

On Wednesday, the delegation is scheduled to visit the New Clark City development site, where it will receive a briefing from the Bases Conversion and Development Authority (BCDA) on project progress and future plans, and assess opportunities for participation in smart city, transportation and energy projects.

However, securing financing and project viability will be key to translating the discussions into actual contract wins. KOTRA said it would be worth exploring not only Philippine government funding but also financial support from multilateral development banks such as the ADB and public-private partnership arrangements.

"It is important to identify promising projects early by examining not only procurement plans but also financing and feasibility," said Koo Bon-kyung, head of KOTRA's Southeast Asia and Oceania regional headquarters. "We will work to turn the cooperation opportunities identified this time into actual project participation, and develop the Korea-ASEAN Project Plaza — which marks its 10th edition next year — into a leading platform for Korea-ASEAN infrastructure cooperation."