National Day of Korea

THE Republic of Korea celebrates its national day

today. South Korea has been one of the Philippines'

top five investors since 1989. Korean direct

investment in the Philippines accelerated in the

1990s. From only one in 1987, investments rose

dramatically to 300 in the 1990s.

Korea is part of the so-called East Asian miracle. Foreign

investments in Korea accelerated in the mid1980s. Korean

manufacturers transferred their production facilities to

foreign countries in response to rapid wage increase in

their own country, the appreciation of the Korean

currency, and the trade restrictions on Korea's exports.

Southeast Asia was the major destination of Korean

investments.

The Philippines has been one of the beneficiaries of

Korea's "Asia-shift." The composition of the countries'

exports and imports has been affected by structural

reforms they instituted. The Philippines has gone toward

manufactured products, especially electronics and

electrical products, moving away from primary

commodities. In the meantime, South Korea has been

replacing light manufactures and textiles with machinery

and transport equipment.

A euphoric mood has permeated the Korean people as a

result of the recent visit of President Kim Dae Jung to

North Korea. It was a milestone event in the reconciliation

process that could lead to the reunification of the two

Koreas.

We congratulate the people and government of Korea on

the occasion of their national day.