In a significant step towards enhancing agricultural productivity, the Korea Agricultural Machinery Industry Cooperative has joined forces with the Philippine government to launch a groundbreaking agricultural machinery industrial complex in Cabanatuan City. This collaboration aims to modernize farming practices in the Philippines while expanding South Korea’s machinery exports in Southeast Asia (SEA).

The initiative was officially announced by Korea’s Ministry of Agriculture, Food and Rural Affairs (MAFRA), marking the commencement of construction on December 10. Spanning over 200,000 square meters, the complex is expected to see investments from Korean companies aimed at establishing manufacturing plants for agricultural machinery between 2026 and 2034.

The Philippine government is poised to facilitate this project, offering land leases and essential infrastructure support such as roads, electricity, telecommunications, and water supply, alongside tax incentives to ensure its success.

The launch was commemorated with a ceremonial groundbreaking event attended by Philippine President Ferdinand R. Marcos Jr. and key officials from both nations, including South Korean Deputy Minister Kim Jung-wook of MAFRA’s Agricultural Innovation Policy Bureau.

Notably, Korean agricultural machinery exports to Southeast Asia have witnessed a significant surge, reaching $52 million in 2024, up from $37 million the previous year. This growth underscores the increasing demand for mechanized farming solutions in the region and the new opportunities it presents for both countries.

Strategic Entry Point for Korean Manufacturers

The Philippines has positioned itself as a crucial gateway for Korean agricultural manufacturers, accounting for 60% of Korea’s machinery exports to SEA. Exports specifically to the Philippines soared from $9 million in 2023 to a projected $31 million in 2024, showcasing the robust export performance of the nation.

Once operational, the complex is anticipated to significantly contribute to the mechanization of Philippine agriculture, enhancing both productivity and quality. Deputy Minister Kim emphasized the project’s potential, stating, “This initiative will greatly contribute to the development of both countries’ agriculture and agricultural machinery industries.”

He added, “The Ministry of Agriculture, Food and Rural Affairs of the Republic of Korea will make the utmost effort to support the smooth progress of the project. To this end, we will actively cooperate with the Government of the Republic of the Philippines and provide support for Korean companies involved in this undertaking.”

Promoting Korean Agricultural Technology Globally

This initiative aligns with broader objectives from South Korea to advance its agricultural technology on the international stage. In 2025, MAFRA and the Korea Agricultural Technology Promotion Institute (KoAT) launched a program aimed at supporting local demonstrations of small-scale smart farms in global markets. This program helps cover costs related to logistics, customs clearance, installation, and operation.

Demonstrations of innovative Korean agricultural technologies have successfully occurred in several countries, including Malaysia, Vietnam, the USA, Oman, and Kyrgyzstan. Through these endeavors, Korean companies have secured valuable agreements, such as a consulting contract for strawberry cultivation with a Vietnamese company and a partnership with a Malaysian university to promote smart farm technologies.