SBMA ‘saddened’ by Hanjin debt problem

Subic Bay Metropolitan Authority (SBMA) Chairman Wilma T. Eisma said she was saddened to learn that Korean shipbuilder Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) is facing serious financial trouble.

Hanjin, which is currently the biggest foreign investor in the Subic Bay Freeport Zone, filed on Tuesday a petition at the Regional Trial Court in Olongapo City to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as “An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals”.

Hanjin officials, Eisma said, had revealed that the company owes some $400 million in outstanding loans from Philippine banks on top of another $900 million in debts with lenders in South Korea.

Eisma said she was informed that the company still has six pending multi-million new building projects at its Redondo Peninsula shipyard here, and that these may have to be cancelled if a rehabilitation plan does not materialize.

“The bottom line is that the company said it does not have enough cash to repay its loans, and that it cannot continue with its operations under these circumstances,” Eisma said.

“It’s really sad that Hanjin would be in dire financial straits after successfully building some of the world’s biggest ships here and putting the Philippines in the map as the world’s fifth largest shipbuilder,” she added.

HHIC-Phil, which has focused in building high-value vessels, was established in 2006 as a subsidiary of Hanjin Heavy Industries & Construction Co., Ltd., a multi-national company that provides shipbuilding, construction, and plant services in South Korea and internationally.

After frenzied construction of its 300-hectare shipyard began in May 2006, HHIC-Phil rolled out its first ship, the “Argolikos” in July 2008.

With some $2.3 billion in foreign direct investments here, the firm proceeded to manufacture some of the world’s biggest cargo and container ships, bulk carriers, liquefied petroleum gas carriers, very large crude oil carriers (VLCC) and very large ore carriers (VLOC).

According to company records, Hanjin has delivered since 2008 a total of 123 vessels to valued clients across the globe, thus cementing its foothold in the highly competitive shipbuilding market.

In the course of its operation, the Korean firm also became the biggest employer among all registered businesses in the Subic Bay Freeport Zone with some 30,000 employees at peak season, and was recognized by both the Philippine Exporter Foundation (Philexport) and the Department of Trade and Industry (DTI) as top export performer.

However, in the face of recent liquidity problem, Hanjin has laid off more than 7,000 workers last December, Eisma said. The firm is about to lay off another 3,000 early this year until just about 300 local workers and as few as seven Korean supervisors would remain in March to do facility maintenance, she added.

“The SBMA, of course, expressed its concern about the separation of shipyard workers, but we received assurances that those who were laid off were amply compensated. Still, we’re having this aspect checked out,” Eisma said.

She added that the SBMA is now working with Hanjin officials to find some way to keep the shipbuilder, which has helped build Subic’s huge reputation in the global maritime industry.

“I really hope that Hanin’s creditors would agree to some rehabilitation plan, or that the company would find some financial partner to continue with its shipbuilding operations in Subic,” Eisma also said. (HEE/MPD-SBMA)

PHOTO: 

Hanjin shipyard at the Subic Bay Freeport Zone

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Subic Korean community reaches out with cultural show

The Korean community in this free port sought to foster closer relations with other residents in the Subic Bay area with a two-day cultural festival that stressed common musical and artistic traditions.

The event, dubbed as the Philippine-Korean Cultural Festival 2018 was held November 9 and 10 at the Harbor Point Ayala Mall here and showcased a bazaar, live performances, fashion show, cultural dances, and dancing and singing contests.

Easily the top crowd-drawer during the event was artist JinHo Bae, a South Korean pop singer who rose to fame after appearing on Philippine television on the show Mapuan Idol in 2014.

JinHo, who speaks Pilipino fluently, sang equally popular songs to the audience on the first night of the festival.

Other noted performances in the festival were from the Method Philharmonic Orchestra led by Youngchae Son, concert master Moon Sookyung, renowned singers Kim Eu Gene, Jung Jiyoung, Kim Sooah, Je Yeokyeong, and musical director Chun Gyoungho.

The Busan orchestra also played alongside the Gordon Heights High School rondalla ensemble from Olongapo city in an entertaining musical fusion.

Student-members from the local group played Filipino folk songs such as Leron Leron Sinta, Tinikling and Dandansoy, while cultural dancers performed folk dances.

Meanwhile, beautiful and colorful attires or Hanbok from South Korea by Korean fashion designer Yong Ae Kim highlighted the much-anticipated fashion show during the festival. Here, Korean models wowed the crowd with elaborate dresses designed for children to adults, and accessorized with colorful parasols.

The festival was also attended by some community leaders from Olongapo City, who hailed the event as a testament to the close ties between the Philippines and South Korea.

According to the Subic Bay Metropolitan Authority (SBMA), South Koreans make up one of the biggest foreign groups in the Subic Bay Freeport today, as the South Korean ship builder Hanjin remains the biggest investor and employer in Subic as well. (JRR/MPD-SBMA)

PHOTOS:
[1-4] Korean artists perform, in some instances with a rondalla ensemble from Olongapo City, during the Philippine-Korean Cultural Festival 2018 on November 9 and 10 at the Subic Bay Freeport’s Harbor Point Mall. (MPD-SBMA)

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Evergreen adds Subic to Korea-Taiwan-Philippines service

Taiwan’s carrier Evergreen will add Subic to its existing Korea-Taiwan-Philippines (KTP) service from next month, utilising Subic’s New Container Terminals 1 and 2 operated by Manila-based International Container Terminal Services, Inc. (ICTSI).

The addition of Subic to Evergreen’s KTP service will open the port to direct trade links with South Korea and Taiwan. The trade will also include transshipment service for overseas cargo.

Cargo unloading at the container terminal in Subic Bay Freeport

The first Evergreen container ship is scheduled to make its maiden call at Subic on 19 April. The weekly KTP service port rotation is Korea’s Incheon and Kwangyang, Taiwan’s Kaohsiung, the Philippines’ Batangas, Manila and Subic, and back to Kaohsiung.

Roberto R. Locsin, general manager of ICTSI subsidiary Subic Bay International Terminal Corp, commented: “Our inclusion in the KTP service is a clear indication that the markets of central and northern Luzon are growing, and will benefit from another large global carrier participating in this growth.”

In December 2016, the Taiwan Maritime and Port Bureau (TMPB) expressed interest to partner with the Subic Bay Metropolitan Authority (SBMA) to increase container transhipment traffic between the ports of Taiwan and Subic.

The Philippines has been able to capitalise on Taiwan’s ‘Southbound Policy’ which aims to strengthen trade and investment relationship between Taiwan and countries south of the latter’s territory.

Taiwan is the Philippines’ sixth biggest trading partner, facilitating around $7.85bn worth of bilateral trade in 2015. South Korea, on the other hand, is the Philippines’ fifth largest trading partner in 2015 with bilateral trade reaching $13.4bn in 2014.

Recently, SBMA has urged local government units around the Subic Freeport Zone to start developing industrial parks to accommodate the growing number of investors.

“We’re now seeing the results of our campaign to promote Subic. We are doubling our efforts to sustain the current momentum to ensure we don’t lose on the gains we have achieved in putting Subic at the center of economic growth in central and northern Luzon, ” said ICTSI’s Locsin. (Lee Hong Liang, Seatrade Maritime)

http://www.seatrade-maritime.com/news/asia/evergreen-adds-subic-to-korea-taiwan-philippines-service.html

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No need to worry, Garcia assures Hanjin-Subic workers

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia has assured workers of Subic shipbuilder Hanjin Heavy Industries and Construction-Philippines (HHIC-Phil) that their company is not affected by the problem besetting Hanjin Shipping Corporation.

“I think that the Hanjin workers in Subic have nothing to worry about because the financial woes affecting Hanjin Shipping has no impact on Subic,” Garcia said.

The Hanjin shipbuilding facility at the Subic Bay Freeport (AMD/MPD-SBMA)

“They can rest assured that the Hanjin company in Subic is a separate entity and the one here is very stable,” Garcia added.

The Subic official issued the statement following inquiries from workers at HHIC-Phil’s Redondo Peninsula shipyard in this free port after Hanjin Shipping Co. Ltd., reputedly the world’s seventh largest shipping line, filed for bankruptcy protection in the United States last Friday.

Accordingly, the Korean shipping line was left bankrupt when creditor-banks rejected its debt-restructuring plan. Lately, Hanjin Group, which is its parent company, has announced it will out up $90 million to bail out the shipping line.

Garcia pointed out that the shipbuilding firm Hanjin in Subic Freeport and the bankrupt company Hanjin Shipping are two separate entities.

“HHIC-Phil is not related to Hanjin Shipping, so there is no need to worry,” he said, pointing out that the Subic shipbuilder has separated from the Hanjin Group in 2005.

Earlier, HHIC-Phil Managing Director for External Trade Yoo Hoan Jo also said that the Subic shipbuilding firm remains financially healthy and stable.

“Despite what is happening in the shipping industry, orders for container ships are still coming,” Jo said in a statement. He said the new orders include three Ultra Large Container Vessels (ULCVs) that will have the capacity to carry 20,600 twenty-foot equivalent unit (TEU) containers in one hauling.

The HHIC-Phil official added that the new projects “would likely mean additional workers for the completion of these three ULCVs.”

Jo said that “the tried and tested Filipino workers at the Subic shipyard” has helped Hanjin deliver 91 vessels since it started full operation at the Redondo Peninsula in 2008.

He added that the company has delivered 16 vessels last year and has numerous orders this year, including the three ULCVs.

Jo also said that the Subic shipbuilder now has 35,000 direct and indirect employees working on various operations at HHIC-Phil’s Subic facility. (JRR/MPD-SBMA)

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Asian tourists love Subic, Clark

Koreans and Taiwanese composed the majority of the 1.4 million foreign and local tourists who visited Subic and the 900,000 who trooped to Clark in 2015, according to Ronaldo Tiotuico, the regional director of the Department of Tourism in Central Luzon.

The tourists come to the Philippines for weekend casinos and golf courses, Tiotuico said. Subic attracts more tourists than Clark because it is a seaport with natural wonders, theme parks, white beaches and convention facilities that can accommodate up to 9,000 participants, he added.

Clark, a former air force base, also offers casinos and two golf courses and a convention center that can hold 1,000 persons. Outside the base, Angeles City offers culture, heritage houses and food tourism.

Clark will host a bicycle race on July 30 with 600 participants. The cyclists will visit tourists spots inside the base, which is being promoted as a biking hub. There will also be a two-day trade exhibit by bicycle producers and traders at the mall inside the base, Tiotuico said

Other tourist spots near Clark, Tiotuico said, are the Lahar 4x4 trail, the Mt.Pinatubo crater and the Sta. Juliana native village, which attracts 300 tourists a week.

Tourism authorities are anticipating the conversion of Clark International Airport into a dual airport, but the lack of infrastructure and traffic dampens their enthusiasm.

According to Tiotuico, the tourism gains of a dual airport system will spill over to Regions 1 and 2, including the Cordillera.

However, some sectors urged Tiotuico to first develop the rich tourism potential of Central Luzon to serve the expected increase in arrivals.

Some of these potential tourist magnets are the Death March trail dating back to the World War II, beaches, the Mango Festival of Zambales and Aurora, the planting season of Nueva Ecija and its Science City, the war memorial of Bataan, and the Giant Lantern Festival and the Via Crucis of Pampanga.

Lack of tourism information prevents foreign and local tourists from fully experiencing the treasures of these destinations, they said. (Romeo Dizon, The Standard)

PHOTOS: 
Fun-tastic activities in Subic Bay that attracted 1.4 million foreign and local tourists in 2015 (AMD/MPD-SBMA)

http://thestandard.com.ph/news/-provinces/211499/asian-tourists-love-subic-clark.html

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Hanjin Subic Bay Yard Achieves 70% of 2015 New Order Target

With relatively good performance due to no unfavorable factors of offshore plants, Hanjin Heavy Industries & Construction (HHIC) is happy about the performance of its overseas Subic Bay shipyard.

HHIC’s Subic Bay shipyard in the Philippines, which has been operating for six years now, has achieved 70 percent of the 2015 new order target with the orders of large container ships. In contrast, HHIC’s Youngdo yard in Busan, which is considered the beginning of the company, has shown some 20 percent of the new order achievement rate.

According to industry sources on Oct. 6, HHIC’s Subic Bay shipyard won contracts worth US$1 billion (1.17 trillion won) as of the end of last month. Accordingly, it is expected to achieve the 2015 target of US$1.2 billion (1.4 trillion won) with ease. The Subic Bay shipyard has received orders to build three 20,000 TEU container ships for the first time this year and six 11,000 TEU vessels. Considering the fact that the shipyard obtained the US$56 million (653.52 billion won) contracts to build a total of six ships last year, it has won orders, which are nearly two times as much as last year, in the third quarter alone.

The strengths of the Subic Bay shipyard are a large site, 10 times that of the Youngdo yard, and cost competitiveness, with labor costs lower than China. With a floor space of 80,000 peyong (264,000 m2), the Youngdo yard cannot build vessels with more than 6,000 TEU. Therefore, building ships with more than 10,000 TEU, which fits with the current mega ship trend, is only possible in the Subic Bay shipyard, said a HHIC spokesperson.

The labor cost also stands at 400,000 won (US$343) a month per person. The figure is much lower than an average of 5 million won (US$4,284) in Korea or some 1 million won (US$857) in China. An official from HHIC said, “As an alternative of the Youngdo yard, the company has invested in the Subic Bay shipyard for about a decade to make it technologically competitive. All our hard work finally paid off.”

Unlike the Subic Bay shipyard that has become stable, however, HHIC’s Youngdo yard seems unstable. The shipyard received US$69 million (805.23 billion won) orders for 15 vessels in 2013 when it resumed building ships. Last year, it saw a slightly better performance with 11 ships at US$77 million (898.59 billion won). However, the shipyard only won US$260 million (303.42 billion won) contracts for eight ships as of the end of Sept. this year. The cumulative figure is a mere 22 percent of the target of US$1.2 billion (1.4 trillion won). Of the eight ships, two ships are liquefied petroleum gas (LPG) carriers, while another two ships are 1,900 TEU ships, and the remaining four ships are special vessels.

Despite poor performance in the Youngdo yard, HHIC’s performance prospects in the third quarter are not dim. This is partly due to the favorable turn in the construction sector and the company’s efforts to reduce deficits.

According to data from FnGuide, a securities information service provider, sales and operating profits of HHIC in the third quarter are estimated at 666.2 billion won (US$570.87 million) and 14.9 billion won (US$12.77 million). Although sales decreased from the second quarter, operating profits turned positive. FnGuide expects that Hyundai Heavy Industries will post 26.1 billion won (US$22.37 million) in operating profits, while Samsung Heavy Industries will post 29.7 billion won (US$25.45 million. However, Daewoo Shipbuilding & Marine Engineering is expected to see losses of 35 billion won (US$3 million). In terms of operating profits, HHIC surpasses the nation’s big three shipbuilders. (Jung Min-hee, Business Korea)

PHOTO:
Subic Bay Shipyard, a subsidiary of Hanjin Heavy Industries & Construction in the Philippines.

http://www.businesskorea.co.kr/news/industry/12380-almost-there-hanjin-subic-bay-yard-achieves-70-2015-new-order-target

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SBMA steps into Korean feud over int’l school

SUBIC BAY FREEPORT — Subic Bay Metropolitan Authority (SBMA) took over an international school here to keep the peace on Tuesday, hours after a scuffle erupted between security guards and Koreans claiming ownership of the school, which left three people hurt, including a student and a teacher.

SBMA Chair Roberto Garcia said the agency assumed the responsibility of securing American International School (AIS) of Subic, after SBMA’s law enforcement department removed some 50 security guards from the school.

Lawyer Randy Escolango, SBMA deputy administrator for legal affairs, said the SBMA would secure the campus for an indefinite period.

It was the second skirmish there between two groups fighting over the school’s ownership.

On Jan. 11, a similar commotion injured five people. Tension gripped AIS when men hired by Korean Lee Sangeok tried to secure the campus, triggering a commotion with private security personnel contracted by the AIS board of directors led by his former Korean partners, Bae Myung-hee and Hong Jong-wook.

Earlier, Hong, through an interpreter, said he and his wife were the legitimate owners of AIS since they owned a combined 96 percent of the company’s shares while Lee owned only 1 percent.

On Tuesday, school guards stormed the unit of Hong, shattering the glass windows before forcing people out of the school premises in the afternoon, according to accounts of parents of AIS students.

Korean Noi Yoon, a teacher, was hurt during the clash.

Josie Evans, president of the parents and teachers association of AIS, said a student, who was not immediately identified, was also hurt in the commotion.

Evans said Hong passed out when some of the guards dragged him out of his unit, and was later taken to a hospital. With SBMA in control, Escolango said he expected classes to normalize soon.

Judge Richard Paradeza, of the Olongapo City Regional Trial Court Branch 72, recently enforced a writ of preliminary injunction against Bae and Hong’s group, which the judge first issued on Jan. 14, 2013, when this group of Koreans tried to wrest control of the school from Lee’s group in November last year.

But Bae and Hong won a Court of Appeals (CA) ruling on June 26, 2013, which nullified Paradeza’s order and prevented the judge from hearing the case that Lee filed against them.

Paradeza, however, said the CA’s decision was not final as Lee’s camp filed for a motion for reconsideration. (Allan Macatuno, Inquirer Central Luzon)


Read more: http://newsinfo.inquirer.net/670222/sbma-steps-into-korean-feud-over-intl-school#ixzz3QmFGSQem
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Rich cultural exchange between Filipinos and Koreans in Subic

“South Korea and the Philippines have a long history together. South Korea’s political, economic and cultural ties with the Philippines are stronger than before.”

This was the statement made by Hanjin Heavy Industries and Construction-Philippines President Jin Kyu Ahn during the opening ceremony of the Korean Cultural Festival at the Redondo shipbuilding facility on Wednesday.

With the theme: “Hi Korea Anneong ASEAN,” the Korea Cultural Festival is in line with the celebration of the 25th anniversary of the relationship between South Korea and the Association of Southeast Asian Nations (ASEAN). The celebration is a precursor to the two-day Korea-ASEAN Summit that will take place on December 11 in Busan, South Korea.

Ahn said that the evolving partnership between the Philippines and South Korea rests on a foundation of shared values and interests. He added that the vessels made by the company are a testament of the two countries’ ingenuity and hardwork.

Director for Korean Cultural Center Hon. Chung-Suk Oh and other Korean diplomatic officials who came to the event were welcomed by some 25,000 shipbuilding workers at the Redondo facility.

The Filipino workers were treated to a Korean traditional dance, as five beautiful Korean performers dressed in Hanbok gracefully danced onstage. A ballet dance was also showcased in the event.

Other highlights of the night were a balancing act, a traditional drum exhibition and a band performance by Korean artists. (Jonas Reyes, Manila Bulletin)

PHOTO:
KOREAN HERITAGE – Dancers in colorful Korean Hanbok perform during the Korea Culture Festival at the Hanjin shipbuilding facility in Redondo Peninsula, Subic on Wednesday.

http://www.mb.com.ph/rich-cultural-exchange-between-filipinos-and-koreans-in-subic/

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Korean studes complete week-long outreach program in Subic Ayta community

Volunteer students and faculty coordinators from a university in South Korea ended a week-long outreach program in a tribal community inside this free port over the weekend, engaging in an exchange of cultural dance and music, and trying out traditional games with Ayta children.

The event provided the lighter side of a five-day immersion program at the Pastolan Ayta Village here that saw the foreign visitors repairing, repainting, and completing the tiled floor and electrical wiring of a day care center, as well as the roofing of the village’s multi-purpose hall.

Subic Bay Metropolitan Authority (SBMA) Chairman Roberto Garcia, who lent support to the project by coordinating with the Ayta leaders, said that a total of 44 student-volunteers and three faculty coordinators from Youngsan University (YSU) in Busan, South Korea, conducted the week-long cultural exchange and outreach program.

“This is the third time that Youngsan University volunteers visited Subic under their cultural exchange and outreach program,” Garcia noted.

Aside from fixing the day care center and the multi-purpose hall, the Koreans also replaced the basketball back boards at the community plaza with fiber glass, and concreted the pathway inside the local elementary school campus.

The Korean students also donated school supplies for Ayta schoolchildren, and taught them arts and crafts, as well as proper grooming.

The closing-day ceremony last Saturday turned out to be the most fun, as the visiting Koreans entertained the Ayta children with Korean songs, Gang-nam style dance, as well as taek-won do and drum exhibitions. The “party” was carried out under heavy rains.

Pastolan tribal chieftain Conrado Frenilla said the tribal community was “very happy” for the outreach program. “We really enjoyed their presence here,” he said.

Pastolan Elementary School principal Hilda Sayson said that the outreach program developed attachment among the Korean and the Ayta students, as they enjoyed each other’s company. Both the children and the volunteers alike were in tears as they hugged to bid goodbye.

“Although most of the Koreans cannot speak and understand English or Filipino, language was not a problem in understanding what the other was saying,” Sayson observed. “Apparently, friendship and the willingness to help overcame barriers of communication,” she added.

Meanwhile, in his letter to Garcia, YSU president Gu-Wuck Bu thanked the SBMA for the continuous support the agency has given to the university programs.

“With our partnership with the SBMA, Youngsan University teacher-coordinators and volunteer-students were able to donate school and community supplies, and render community services to indigent students,” Bu said.

Bu noted that aside from the community work undertaken at the Pastolan Ayta Village, his group also donated a total of 1,000 chairs for the Pastolan Elementary School, the Cabalan and the Columban elementary schools in Olongapo City; Payangan Elementary School, an Ayta community school in Dinalupihan, Bataan; and another school in Castillejos, Zambales. (RAV/MPD-SBMA)

PHOTO:
A student-volunteer from the Youngsan University in Seoul, South Korea, teaches origami or the art of paper-folding to an Ayta girl at the Pastolan Village, an indigenous tribal community inside the Subic Bay Freeport, during an outreach project coordinated by the SBMA Public Relations Department.

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S. Korea’s Philippine investments reach $3.8B

CLARK FREEPORT – South Korean investments in the Philippines have reached an estimated $3.8-billion, an official from the Embassy of the Republic of Korea shared Wednesday.

South Korean Minister and Consul General Min Kyong- Ho said that amount includes the Hanjin Heavy Industries and Construction Co. based at the Subic Bay Freeport and a thermal power plant based in Batangas.

Kyong-Ho also said that trade volume between the Philippines and South Korea has reached $11.5 million as of October.

He explained that the amount exceeded the expected $10-million trade volume between the two countries.

Kyong- Ho added that the Korean Consulate now expects a total of $12-million in trade volume before the end of 2013.

“I would like to thank the Filipino people for welcoming and helping Korean communities here. We would be happy to see a lot of your countrymen to participate in our cultural events,” Kyong- Ho said.

Aside from investing, Kyong-Ho added that Philippines is one of the favorite vacation destinations of Korean, most especially during their winter season.

“It is now winter in Korea hence the Philippines should expect more Korean tourists to arrive in the country,” he said. (Mark Manuel, Manila Bulletin)

Source: http://www.mb.com.ph/s-koreas-philippine-investments-reach-3-8b/

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SBMA signs cooperation agreement with Ulsan

The Subic Bay Metropolitan Authority (SBMA) and the Ulsan Metropolitan Office of Education (UMOE) in South Korea recently signed a memorandum of understanding (MOU) to promote understanding and cooperation between the two institutions.

The UMOE is located in Ulsan Metropolitan City, which is South Korea's seventh largest metropolis and considered as the nation’s industrial powerhouse.

The agreement, signed on August 30, primarily aims to develop cooperative projects concerning education, as well as culture, tourism, community welfare and development, human resource development, environmental protection, and science and technology.

SBMA Chairman Roberto V. Garcia said that under the agreement, SBMA and UMOE seek to formulate and undertake projects and activities for their mutual development and to advance their respective areas of interest.

The officials who represented UMOE during the signing were Kim Bok Man, director of curriculum management division; Hong Hung Goo, manager of internal education; Jeong Hwi, person in charge for international cooperation; Kim Sun Ae, chief secretary; and Han Kyu Chung, administrator.

Aside from Garcia, those present for the SBMA side were Raul Marcelo, deputy administrator for business; Maria Asuncion Fernando, head of corporate communications; and Armina Llamas, public relations manager.

In the signing ceremony, Garcia pointed out the “very close relationship” between the Subic Bay Freeport and South Korea.

“They (the Koreans) are our number one investors here, led by Hanjin which has proven to be one of the most successful business locators here in the Philippines,” he said.

Garcia added that many Korean nationals have chosen Subic as their place of business, or venue for schooling. “As you know, we have facilities here for different types of business, and we have many English-language schools that are popular to Korean students,” he added.

Garcia also recalled that, as an official in Subic, he recently signed an agreement with officials of the city of Daejung to encourage the exchange of information beneficial to both areas.

“So I would like to take this MOU as a sign that, again, we can work closer with the Korean community in attracting foreign investors to come and invest in Subic,” he said.

As a sign of their commitment to the agreement, UMOE donated 300 bags of relief goods for victims of the recent floods in communities near the Subic Freeport, as well as a brand new laptop and five used netbooks. (FMD/MPD-SBMA)
PHOTO:
SBMA Chairman Roberto V. Garcia (right) and Kim Bok Man, director of curriculum management division of the Ulsan Metropolitan Office of Education, present a memorandum of understanding that they have signed to promote understanding and cooperation.

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SBMA signs MOU with Korea’s “Silicon Valley”

The Subic Bay Metropolitan Authority recently signed a Memorandum of Understanding (MOU) with Daejeon TechnoPark, one of South Korea’s leading technological institutions, in the metropolitan city of Daejeon.

Known as the “Silicon Valley” of South Korea, Daejeon Technopark is the second biggest center of Administration and Science and Technology, and plays a key role in Korea’s domestic economic development.

SBMA chairman and administrator Roberto V. Garcia and Dr. Park Jun Byung, Daejeon Technopark president and CEO, and Daejeon City vice mayor for administrative affairs and director general of science, culture and tourism, signed the MOU in Daejeon City last July.

Also present during the signing ceremony were SBMA director Benjamin Antonio, and several other city and Technopark officials as witnesses.

“The agreement basically aims to build up strategic and collaborative partnerships between SBMA and Daejeon Metropolitan City (DMC), which is South Korea's fifth largest metropolis and science and technology capital,” Garcia noted.

Common collaborative efforts between SBMA and DMC are expected to bring mutual growth and benefit to their respective stakeholders, particularly in the areas of industrial technology, business development and exchange, global network construction, knowledge resource sharing, and support marketing.

According to Garcia, the MOU will allow both SBMA and DMC to promote joint business matching, research projects and cooperative networking among business and research institutes.

The two parties have also agreed to carry out various exchange programs such as technology development, staff training and workforce exchanges in order to foster mutual understanding.

“This is a very significant development for the Freeport, especially considering that Daejeon is home to various private and public research institutes, centers and science parks, the more notable of which include the Electronic Telecommunications Research Institute, the Korean Aerospace Research Institute, the Korea Research Institute of Bioscience and Biotechnology, the Korea Institute of Energy Research, the National Nanofab Center, and research and development centers of Samsung and LG, among others,” Garcia added.

After the signing, Garcia and Antonio met with Daejeon mayor Yeom Hong-chul and proceeded to Chungnam University, one of the largest government universities among the 18 universities in Daejeon.

At Chungnam, the SBMA officials met with the university vice president, Prof. Oh, who described how a Technopark, in the true sense of the word, should be set up, and that is, in collaboration with an educational institution and a testing/research center.

Prof. Oh is also the secretary general of the World Technopark Association (WTA) and has been involved in setting up techno parks in many parts of the world, including Kenya, Mongolia, Indonesia, Egypt and Sri Lanka.

“With a MOU with Daejeon in place, we hope to develop and replicate that kind of techno park here in the Freeport,” Garcia said. (KMF_SBMA)

PHOTO:
SBMA Chairman Roberto V. Garcia (left), Daejeon Technopark officials present a memorandum of understanding they signed for the collaborative partnership between the SBMA and Daejeon Techno Park in South Korea.

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SBMA, Korean university launch cultural exchange program

The Subic Bay Metropolitan Authority (SBMA) and Youngsan University of South Korea (YSU) have signed a memorandum of understanding to enhance cultural cooperation between the two institutions.

SBMA chairman Feliciano Salonga said the MOU aimed to promote mutual understanding, collaboration and cooperation between SBMA and YSU through exchange programs that will mutually benefit YSU students and SBMA staff.

Salonga and university president Gu Wuck Bu signed the agreement recently after a YSU delegation composed of 27 students and three officials arrived here on June 30 for five days of community immersion under the university’s Global Overseas Volunteers (GOV) program.

The signing was witnessed by Sung Sim School chairperson Ro Chan Young and other officials from both the SBMA and YSU.

“This is another door of opportunity being opened for SBMA employees,” Salonga said, noting that under the MOU, the Korean school shall give scholarship grants to two SBMA nominees for one year, inclusive of tuition and application fees. On the other hand, SBMA will accept two YSU students each year for an internship program.

Salonga said that payments for board and lodging, book allowances, medical insurance and international travel fare shall be separately negotiated and approved by both parties when the exchange program is implemented.

Aside from the cultural exchange, the YSU delegation conducted community outreach projects at the Pastolan Aeta village in the Subic Bay Freeport.

A day before the MOU was signed, Salonga, Bu and Young inaugurated a basketball court in Pastolan, an Aeta village inside the Subic Freeport Zone.

The court was funded by the Korean group and constructed by the 27 student-volunteers in five days.

Won-Cheol Choi, project manager of the YSU GOV, said the volunteers also participated in community projects like the construction of playground, and the repair and remodeling of the day care center in Pastolan.

Choi said the five-day immersion activity has made Subic “a very special place for us now.”

“The volunteers enjoyed being with the members of the community,” Choi said. “They taught the Aeta children taekwondo, music and art, and beauty care and acupuncture to adults.”

On the other hand, Young said the agreement signified a better future for both the SBMA and YSU.

“We are delighted to mark the beginning of our new relationship with your beautiful community and the SBMA,” said Young. “We hope that this project will bring better opportunity and much joy, especially for the younger generation.” (SBMA Corporate Communications)

PHOTO:
SBMA Chairman Feliciano Salonga (right) and Youngsan University president Gu Wuck Bu conclude an agreement for a cultural exchange program.

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SBMA offers casino property to Korean firm

The Subic Bay Metropolitan Authority (SBMA) blockaded the hotels and a casino that a Hong Kong-based company is operating so it could offer the property to a Korean company that also wants to build a hotel and casino here, the firm’s liquidator said.

David Maund, a liquidator appointed by a Hong Kong court in 2006 to bring back Legend International Resorts Ltd. (LIRL) to profitability, told the Philippine Daily Inquirer in a phone interview from Hong Kong last week that the SBMA suddenly changed its approach in dealing with LIRL.

“[We learned that] the SBMA [was] paving the way for another group to take over [LIRL’s properties]. They blockaded the establishments to intimidate potential guests and users of the hotel,” Maund said.

The SBMA has offered LIRL’s properties to Neorex Philkor Inc., a Korean company that tried to build Ocean 9 hotel-casino at a tree park here last year, he said.

SBMA Administrator Armand Arreza confirmed that Neorex had been assigned LIRL’s properties. He said a lease contract with the Korean company had been approved by the SBMA.

“The assignment to another group is not the main issue. In fact, the liquidator has been trying to assign the property … for almost two years. Their repeated failure to honor their financial obligations with the SBMA and Pagcor (Philippine Amusement and Gaming Corp.) resulted in the termination of their lease,” Arreza said.

In 2006, Pagcor revoked LIRL’s gaming license when the company could not pay more than P1 billion it owed in the form of casino shares.

Eric Park, Neorex manager, said his company had “no clear plans for now.”

“Several sites were offered [by the SBMA], but each has its own issue to be considered carefully,” Park said.

Maund said the measures that SBMA officials were taking are “illegal.” He said that the company “agreed to the rehabilitation plan and there are still ongoing proceedings in Hong Kong. It is extremely regrettable that they are doing this.”

The SBMA barricaded LIRL establishments after the courts granted the SBMA’s motion to dismiss the rehabilitation proceedings and lift the stay order.

In an earlier interview, Arreza said the court ruling was executory.

“We saw that the rehabilitation proceeding was going nowhere, so we appealed to the court to end it, which the court did,” he said.

Arreza said the rehabilitation plan failed because “one of the premises of the corporate rehabilitation plan was having the gaming license from Pagcor.”

“Also, contrary to what LIRL had committed to under the corporate rehabilitation program, the company had given up its leases on other establishments it ran like Feng Huang Restaurant, Garden Units Hotel, Grand Seasons Hotel, and Neptune Club by the time we filed the motion to dismiss,” he said.

He said the SBMA had to move to protect the government’s interest.

“As far as we are concerned, the SBMA does not recognize the proceedings in Hong Kong,” he said.

But Maund said he represented all of LIRL’s creditors, both in the Philippines and abroad. “This includes the SBMA. My responsibility is to all of them,” he said.

He said the hedge fund Avenue and the firm Morgan Stanley have the largest shares of LIRL’s debt.

“They bought a massive amount of LIRL’s bank debts. What LIRL owes the SBMA is just a small fraction of the total debt of the company. The interests of the other creditors must not be prejudiced. All the creditors must be treated equally … unless there is a reason not to do so,” Maund said.

Asked whether LIRL would continue operating its establishments here, Maund said the firm was seeking an injunction against the SBMA to get it “operating profitably and without hindrances again.”

As for LIRL’s workers who may lose their jobs if the company goes under, Maund said: “[I am] concerned about their future. It depends on whether we can successfully resist what the SBMA is trying to do.”(Robert Gonzaga, Inquirer Central Luzon Desk)

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