The project was a cooperation between the Korea Agricultural Machinery Industry Cooperative and the Philippine government, aligning Manila’s push to mechanise its farming with Seoul’s ambition to expand machinery exports to the region.
Korea’s Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that construction of an agricultural machinery industrial complex in the Philippines began on December 10 in the City of Cabanatuan.
It said that Korean companies are set to invest in building agricultural machinery manufacturing plants on the 200,000-square-metre site between 2026 and 2034.
The Philippine government will support the project through land leases and infrastructure such as roads, electricity, telecommunications and water, as well as tax incentives.
The start of the project was marked by a groundbreaking ceremony attended by Philippine President Ferdinand R. Marcos Jr, alongside senior government officials from both countries, including South Korean Deputy Minister Kim Jung-wook of MAFRA’s Agricultural Innovation Policy Bureau.
Korean agricultural machinery exports to SEA have been rising, reaching U$52m in 2024, an increase from U$37m in 2023.
This highlighted the growth potential of South East Asia, where rising demand for mechanised farming solutions has created new export opportunities.
When ready, the project is expected help Korea’s agriculture machinery companies diversify its export markets to SEA and other regions beyond North America.
The Philippines has emerged as a strategic entry point for Korean manufacturers with its strong export performance.
The country accounted for 60% of Korea’s agricultural machinery exports to SEA with exports increasingly sharply from U$9m in 2023 to U$31m in 2024.
At the same time, the hub is expected to play a significant role in mechanisation of the agriculture of the Philippines, as well as improve its agricultural productivity and quality.
“This project will greatly contribute to the development of both countries’ agriculture and agricultural machinery industries,” said Deputy Minister Kim during the ceremony.
“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 project.”
Boosting Korean agtech overseas
The initiative complements broader South Korean efforts to promote its agriculture technologies overseas.
In 2025, The Korea Agricultural Technology Promotion Institute (KoAT) and MAFRA launched an initiative supports local demonstrations of small-scale smart farms in international markets by covering costs such as logistics, customs clearance, installation and operation.
Demonstrations of Korean agriculture innovations have been held across five countries, including Malaysia, Vietnam, the US, Oman, and Kyrgyzstan.
Through this program, a Korean company Apes has signed a consulting export contract for strawberry cultivation with a Vietnamese company, while KS Farm formed a business agreement with a Malaysian university to promote Korean smart farm technology.
