Photo credit: DOF

MANILA – The Philippines’ Department of Finance (DOF) has issued a firm denial regarding a reported ₱28 billion official development assistance (ODA) loan from South Korea, stating that no such agreement ever came to fruition. The clarification comes in direct response to South Korean President Lee Jae-myung's recent public statement that he had ordered the suspension of a loan for a massive modular bridge project in the Philippines due to corruption concerns.

In a statement, the DOF categorically clarified that no such loan exists. The department further explained that while the project was initially considered for funding through South Korea, the Philippine government, specifically the Department of Agrarian Reform (DAR), decided to halt discussions in late 2024. The reason given was a non-alignment on scope and other key technical specifications of the project.

The DOF added that the Philippine government has since been in advanced negotiations with the government of France to secure financing for the project.

This official statement from the DOF directly contradicts the South Korean president's assertion and the investigative report that prompted his action. The differing accounts have created a diplomatic puzzle, with the Philippine government maintaining that the premise of the South Korean action—the existence of the loan—is false. The DOF concluded its statement by reaffirming its commitment to full transparency and accountability with its bilateral partners.