South Korean President Pulls the Plug on ₱28.7B Loan to Philippines Over Corruption Fears

MANILA - South Korean President Lee Jae-myung has slammed the brakes on a massive 700-billion won ($500M / ₱28.7B) infrastructure loan meant for the Philippines, citing fears of rampant corruption.

“It has been ordered to immediately stop proceedings for the business in question that has been identified as a fraudulent business,” Lee declared in a fiery Facebook post, stunning both Manila and Seoul.

The scrapped loan—sourced from the Economic Development Cooperation Fund (EDCF)—was initially shot down by Korea’s Ministry of Strategy and Finance for being a “poorly performing project.” But it mysteriously crawled back to life, reportedly under pressure from People Power Party Rep. Kweon Seong-dong.

Now Lee says he’s saved taxpayers from disaster.“The most fortunate thing is that the business has not yet been completed, so expenses have not been spent. This prevents 7 trillion won in taxes from being wasted on poverty and corruption,” he said.

The project, pushed under President Ferdinand Marcos Jr.’s program, aimed to build 350 modular bridges across Philippine provinces. Instead, it has become the latest casualty of the country’s spiraling flood control scandals.

Lee praised the press for exposing the mess:“The media is the observer of power and the salt that prevents corruption in society,” he said, hailing reporters for defending the people’s right to know.

With billions frozen, Filipinos are left asking: Was this a bridge to progress—or a bridge to nowhere?