Top South Korean companies, including the conglomerate Lotte Group, are planning to invest and expand into the Philippines, with a focus on food service, franchising, and retail modernization.

In a statement, the Department of Trade and Industry (DTI) said Secretary Cristina Roque met with officials of Lotte Group and other leading South Korean companies during her trade mission in Seoul, South Korea, last week.

The DTI said the meeting highlighted the companies’ plans to leverage their operational expertise and advanced retail models to contribute to the country’s growing economy.

“These companies aim to invest in joint ventures, master franchise agreements, and localized operations that will generate employment, strengthen supply chains, and modernize retail distribution in the country, progressing beyond exporting their brands,” it said.

During the meeting, Lotte GRS, the restaurant service arm of the Lotte Group, shared its intention to launch its flagship fast food brand Lotteria in the Philippines.

Upon launching, Lotteria aims to open at least 30 stores in the country over five years, harnessing local sourcing and workforce development.

Without disclosing the names of the companies, the DTI said some have also outlined plans to introduce “modern convenience store formats” tailored to the “urban Filipino lifestyle.”

The agency said these firms are looking to build on their success in markets such as Vietnam and Mongolia through partnerships with local operators.

The Korean companies told the DTI chief that they are committed to sourcing at least 95 percent of the products in their local stores within the Philippines itself.

Aside from food service and retail ventures, a number of firms are also exploring opportunities in restaurant expansion and import-export channels for the country’s agricultural and seafood products.

The DTI said one company, which it did not name, has recently signed a partnership with a local firm. It will reportedly open its first location in Manila by August.

Roque said the growing confidence in the Philippine market reflects the country’s young and dynamic population, as well as the strength of the economy.

She noted that the government is fostering an investor-friendly environment through strong incentives and streamlined processes, such as those under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

“The Philippines is open for business, and we are committed, aligned, and prepared to grow with our partners,” said Roque.

“As the Philippines continues to attract world-class partners, the DTI continues to work towards supporting foreign investors through services such as partner matchmaking, regulatory assistance, and investment facilitation,” she added.

Author Credits- Dexter Barro II
MANILA BULLETIN