During four days of visits to Singapore and the Philippines, South Korean President Lee Jae Myung sought to diversify South Korea’s economic ties in Southeast Asia, particularly in the fields of artificial intelligence (AI), nuclear energy and defence. Lee stressed that South Korea must deepen cooperation with the Association of Southeast Asian Nations (ASEAN) partners to address shared challenges and foster new growth drivers.
During talks with Singaporean Prime Minister Lawrence Wong, Lee stressed that volatile global conditions require closer coordination among like-minded economies, describing Singapore as a strategic hub for next-generation industries and global capital flows. “In today’s era of extreme uncertainty, trustworthy and genuine partners are more urgently needed than ever to navigate turbulent challenges together,” he said.
While the global AI industry is currently led by the US and China, Lee expressed hope that South Korea and Singapore could take the lead in niche areas, including AI manufacturing. South Korea brings strengths in semiconductors, data centre infrastructure and AI-driven manufacturing, while Singapore offers advanced AI governance frameworks, and serves as a Southeast Asian data and financial hub. Lee announced plans during the AI Connect Summit to create a global investment fund in Singapore by 2030 aimed at attracting $300m in investments in startups and AI.
Lee and Wong agreed to formally begin negotiations to upgrade their bilateral free trade agreement, which has been in force since 2006, and oversaw the signing of five memorandums of understanding (MOUs) covering AI, small modular reactors (SMRs) and advanced technologies.
Korea Hydro & Nuclear Power (KHNP) signed a MOU with Singapore’s Energy Market Authority (EMA – a statutory board under the Singapore Ministry of Trade and Industry) to enhance technology exchange and cooperation on SMRs. The MOU outlines plans for both organisations to cooperate on: conducting joint studies of SMRs for potential applications in Singapore; collaboration in human resource development and training; and sharing of technical information and best practices in the field of advanced nuclear technologies.
“For a small country with very limited domestic energy resources, it is critical that we explore all pathways that can strengthen our energy resilience in a low-carbon world,” said EMA CEO Kok Keong Puah. “Advanced nuclear energy technologies hold promise as a potential clean energy source. Our partnership with KHNP will deepen our capabilities and technical understanding of SMRs, and enable us to assess the suitability of nuclear energy carefully and rigorously.”
Daewook Chun, Acting President & CEO, KHNP said KHNP “will actively engage as a responsible partner in EMA’s process of assessing the safety and viability of SMR technology, and will make every effort to ensure that our expertise and experience lead to meaningful outcomes”.
EMA noted that this was the first nuclear cooperation MOU signed between a Singaporean government agency and a Korean nuclear power company, expanding a bilateral economic partnership that has traditionally centred on trade and investment. “This is part of EMA’s efforts to study various pathways to decarbonise Singapore’s power system, to ensure reliable, secure and sustainable energy supply,” EMA said.
The focus of talks in the Philippines was on defence industry cooperation, nuclear power and critical minerals. Lee and Philippine President Ferdinand Marcos Jr agreed to strengthen bilateral economic cooperation. Lee said South Korea could be an “ideal partner” for Manila’s bid to include nuclear power in its energy mix, based on previous agreements on a joint feasibility study of the long-dormant Bataan NPP and the construction of a new nuclear facility.
The Bataan plant, completed in 1986 but never activated, has drawn renewed interest as Manila reconsiders nuclear energy amid rising power demand and energy transition goals. The Philippines decided to build the two-unit BNPP in the wake of the 1973 oil crisis. Construction of unit 1, a 621 MWe Westinghouse pressurised water reactor, began in 1976 and it was completed in 1984. However, it was almost immediately mothballed in the wake of the 1986 Chernobyl disaster after questions were raised about its excessive cost and poor safety, including its location near a major fault and the Pinatubo volcano.
Since 2009 it has functioned as a tourist attraction, helping defray the cost of maintaining it. There have been several proposals over the years to either start up the plant or convert it to a gas-fired plant. In 2022, the Philippine government decided to restart the long-suspended project with the goal of bringing the station into operation by 2032.
In 2024, Seoul and Manila signed a MOU to jointly conduct a feasibility study for restarting construction of the Bataan facility. The study is currently ongoing. Based on the results of the feasibility study, the two countries will take the position of optimal partners in cooperation in the field of nuclear energy, South Korean President Lee Jae-myung said.
Critical minerals were cited as another strategic pillar. The Philippines possesses abundant mineral resources essential for batteries and advanced manufacturing, while South Korea offers processing technologies and industrial capacity, a complementary structure at a time of rising uncertainty in global supply chains. The two sides also signed an amended defence procurement deal to allow more South Korean companies to contract with the Philippine government as well as nine MOUs to boost collaboration in various areas.
The Export-Import Bank of Korea signed a tripartite MOU with KHNP and Manila Electric Company (Meralco) to support nuclear power development in the Philippines. The agreement positions Eximbank as a financial partner for potential nuclear projects led by Meralco, the Philippines’ largest private power distributor, while strengthening South Korea’s competitiveness in the global nuclear energy market.
Under the agreement, Eximbank will explore financial backing for Meralco-led nuclear projects in partnership with KHNP and other Korean firms. The parties also plan to cooperate on building a nuclear power ecosystem that combines KHNP’s technology with Meralco’s local network.
Eximbank has already supported several power infrastructure projects in the Philippines, including project financing for the Ilijan and Cebu power plants. The bank is also funding feasibility studies related to potential nuclear development in the country. “The certified technical expertise of Korean companies, combined with financial support from Eximbank, will strengthen the Philippines’ energy security and contribute to economic growth,” said Meralco Chairman Manuel Pangilinan.
Eximbank President Hwang Ki-yeon said the agreement marks an important step in expanding the bank’s role in overseas nuclear energy projects. “This memorandum will serve as a starting point for supporting nuclear energy development in the Philippines,” he said. “We will continue to provide financial backing to help Korean companies participate in future projects.”
