“OPPORTUNITIES FOR KOREAN INVESTORS IN PHILIPPINE ECONOMIC ZONES” A presentation for the:

PHILIPPINE INVESTMENT SEMINAR

by LILIA B. DE LIMA Director General, PEZA and Undersecretary, Department of Trade and Industry

22/F Diamond Hall, The Plaza Hotel, Seoul, Korea 10:00 AM, May 7, 2013 “OPPORTUNITIES FOR KOREAN INVESTORS IN PHILIPPINE ECONOMIC ZONES” A presentation for the:

PHILIPPINE INVESTMENT SEMINAR

by LILIA B. DE LIMA Director General, PEZA and Undersecretary, Department of Trade and Industry

Guest House, Hanyang University, Ansan, Korea 10:00 AM, May 8, 2013 Philippine Economic Zone Authority

An investment promotion and incentive granting agency attached to the Department of Trade and Industry.

Reinforce Government’s efforts to:

• Promote Investments • Create Employment • Generate Exports 16 EPZA- REGISTERED PUBLIC & PRIVATE ECONOMIC ZONES ( 1969 - 1994) LUISITA INDUSTRIAL PARK SUBIC SHIP. ENG’G. INC. BAGUIO EPZ VICTORIA WAVE

CARMELRAY DEV’T. CORP. BATAAN EPZ GATEWAY BUSINESS PARK CAVITE EPZ LIGHT IND. & SCIENCE PARK

LAGUNA TECHNOPARK

LAGUNA INT’L. IND’L PARK MACTAN EPZ TABANGAO SPECIAL EPZ

FIRST CAVITE IND’L. ESTATE

LEYTE IND’L. DEV’T ESTATE

MACTAN ECOZONE II

Total Area : 3,183 hectares TOTAL OF 281 ECONOMIC ZONES * BAGUIO ECONOMIC ZONE MARVIN PLAZA BUILDING 3OOD TERMINAL INC. SEZ JOHN HAY SPECIAL TOURISM ECONOMIC ZONE DPC PLACE BUILDING as of 31 March 2013 EMI SPECIAL ECOZONE SANCTUARY IT BUILDING MSE CENTER BATAAN ECONOMIC ZONE CAVITE ECONOMIC ZONE SM BAGUIO CYBERZONE BUILDING TRAFALGAR PLAZA SUBIC SHIPYARD LAGUNA INT’L. INDUSTRIAL PARK FORT ILOCANDIA TOURISM ECONOMIC ZONE IT BUILDING PLASTIC PROCESSING CENTER SEZ LIGHT INDUSTRY & SCIENCE PARK I PANGASINAN INDUSTRIAL PARK II VITRO INTERNET DATA CENTER BUILDING HERMOSA ECOZONE LIGHT INDUSTRY & SCIENCE PARK II LUISITA INDUSTRIAL PARK IT BUILDING LEYTE IND’L. DEVELOPMENT ESTATE LIGHT INDUSTRY & SCIENCE PARK III TECO SPECIAL ECONOMIC ZONE TRANSCOM CENTER MEGACENTER IT BUILDING TABANGAO SPECIAL ECONOMIC ZONE TARLAC PROVINCIAL INFORMATION TECHNOLOGY PARK II IT BUILDING LEYTE INFORMATION COMMUNICATION TECH. PARK LAGUNA TECHNOPARK SM CITY PAMPANGA RIVERBANK CENTER ICT BLDG. I JOSE PANGANIBAN SEZ LAGUNA TECHNOPARK ANNEX ROBINSONS LUISITA RIVERBANK CENTER ICT BLDG II MISIBIS RESORTS AND ESTATES FIRST CAVITE INDUSTRIAL ESTATE CLARK TI SPECIAL ECONOMIC ZONE BLUE WAVE MARIKINA RAPU-RAPU ECOZONE GATEWAY BUSINESS PARK ANGELES INDUSTRIAL PARK UP SCIENCE & TECHNOLOGY PARK (South) KEPPEL MARINE SPECIAL ECONOMIC ZONE PAMPANGA EXPORT PROCESSING ZONE UP SCIENCE & TECHNOLOGY PARK (North) GREENFIELD AUTOMOTIVE PARK STA. MARIA INDUSTRIAL PARK YTMI REALTY SPECIAL ECONOMIC ZONE SUPIMA ECIRCLE LIMA TECHNOLOGY CENTER PHILIPPINE PACKING AGRICULTURAL EPZ COCOCHEM AGRO INDUSTRIAL PARK VICTORIA WAVE PEOPLE’S TECHNOLOGY COMPLEX ROBINSONS PLACE NOVALICHES SAN LAZARO TOURISM AND BUSINESS PARK DILIMAN IT BUILDING GOLDEN MILE BUSINESS PARK CONVERGYS IT BUILDING FIRST PHILIPPINE INDUSTRIAL PARK HTMT CYBER PARK TIGERLAND AGRO-INDUSTRIAL ECONOMIC ZONE EDSA CENTRAL IT CENTER CARMELRAY INDUSTRIAL PARK SUN PLAZA CARMELRAY INDUSTRIAL PARK II EDSA CENTRAL IT CENTER 2 CALAMBA PREMIERE INTERNATIONAL PARK E-SQUARE INFORMATION TECHNOLOGY PARK TOYOTA STA. ROSA SEZ TOTAL CORPORATE CENTER I AG&P SPECIAL ECONOMIC ZONE MCKINLEY HILL CYBER PARK MANILA DAIICHI INDUSTRIAL PARK MARKET! MARKET! ALLEGIS IT PARK ST. LUKE’S MEDICAL CENTER GLOBAL CITY TECHNOLOGY PARK - CALAMBA MULTINATIONAL BANCORPORATION EASTBAY ARTS, RECREATIONAL AND TOURISM PEOPLESUPPORT CENTER IT BUILDING SM CITY BACOOR NORTHGATE CYBERZONE LAKESIDE EVOZONE METROPOLIS STAR ROBINSONS BIG R SUPERCENTER MACROASIA ECOZONE STA. ROSA COMMERCIAL IT PARK ASAHI SPECIAL ECONOMIC ZONE ROBINSONS PLACE STA. ROSA EUGENIO LOPEZ JR. COMMUNICATION CENTER SAINT FRANCES CABRINI MEDICAL TOURISM PARK GLOBAL TRADE CENTER PHILTOWN TECHNOLOGY PARK CYBERPARK ROBINSONS PLACE LIPA SMNE IT CENTER PAMALICAN ISLAND TOURISM ECOZONE BUILDING CAMARINES SUR IT PARK THE ENTERPRISE CENTER BORACAY ECO-VILLAGE RESORT RCBC PLAZA MACTAN ECONOMIC ZONE BURGUNDY CORPORATE TOWER BIGFOOT IT PARK LIBRAN HOUSE IT CENTER MACTAN ECONOMIC ZONE II MJ PLAZA SYNERGIS IT CENTER HDMF-WTCI IT TOWER MANILA HARBOUR CENTER CEBU IT TOWER NEWPORT CITY CYBERTOURISM ZONE MANGO SQUARE SM ICITY CEBU CEBU SM ICITY 2 ARCENAS ESTATE IT BUILDING SM CYBERZONE 1 A. D. GOTHONG IT CENTER G.T. TOWER INTERNATIONAL JY SQUARE IT CENTER THE PASEO CENTER IT BUILDING JY SQUARE IT CENTER III AMKOR TECHNOLOGY CEBU LIGHT INDUSTRIAL PARK PACIFIC INFORMATION TECHNOLOGY CENTER LEXMARK PLAZA JGC PHILIPPINES BUILDING OAKRIDGE INFORMATION TECHNOLOGY CENTER SDC IT BUILDING PHIL. BXT CORP. TOURISM ECONOMIC ZONE ASIAN STAR BUILDING PIONEER HOUSE CEBU THE PARAGON CORPORATE CENTRE WEST CEBU INDUSTRIAL PARK ROBINSONS CYBERPARK NEW CEBU TOWNSHIP ROBINSONS-EQUITABLE TOWER MRI ECONOMIC ZONE PBCOM TOWER HVG ARCADE IT PARK ANSON’S CENTER INNOVE IT PLAZA SUMMIT ONE OFFICE TOWER ASIATOWN IT PARK PHILAMLIFE I.T. BUILDING FEDERATED IT PARK 6750 AYALA AVE. BLDG. DAMOSA IT PARK 6780 AYALA CENTER 6788 AYALA AVE. BLDG. PUEBLO DE ORO IT PARK JG SUMMIT CENTER JASAAN MIS. ORIENTAL ECOZONE DELA ROSA E-SERVICES BUILDING BUKIDNON AGRO-RESOURCES EXPORT ZONE SM CYBERZONE BUILDING DBP IT PLAZA SM MAKATI CYBER ZONE 2 BUILDING THE BLOCK IT PARK 5 ONE SANPARQ UNIONBANK PLAZA * Legend: LOPUE'S EAST I. T. CENTER BPI BUENDIA CENTER LUXUR PLAZA ITFORMATION CENTRE ALLEGRO IT CENTER Manufacturing Economic Zones 65 SMCI IT CENTER EAST CYBER GATE CIIF AGRO-INDUSTRIAL PARK WORLDWIDE CORPORATE CENTER Information Technology Parks / Centers 180 RIO TUBA EXPORT PROCESSING ZONE GATEWAY OFFICE TOWER SARANGANI ECONOMIC DEVELOPMENT ZONE CYBER PARK BUILDING ONE Tourism Economic Zones 16 SRC ALLAH VALLEY ECONOMIC DEVELOPMENT ZONE SRC CALUMPANG ECONOMIC DEV’T. ZONE PHILAMLIFE IT TOWER Medical Tourism Park /Center 2 FIRST ORIENTAL BUSINESS & INDUSTRIAL PARK NISCOM IT BUILDING NCCC DAVAO IT CENTER INSULAR LIFE BUILDING Agro-Industrial 18 LUISA AVENUE SQUARE IT CENTER INSULAR LIFE CORPORATE CENTER NCCC DAVAO IT CENTER MANTICAO ECOZONE CORPORATION SEZ 65 Manufacturing

180 IT Parks (39) and IT Centers (141)

16 Tourism Ecozones

2 Medical Tourism Park / Center

18 Agro-Industrial Parks ECONOMIC ZONE INVESTMENTS 320 8.19 % 41.1 % EPZA 280 ‘86 -’93 12.7 B 1994 9.6 B

240 PEZA 16.6 % 1995 52.5 B 1996 65.3 B 200 1997 159.7 B 1998 96.9 B 1999 155.7 B 13 % 144 % 160 2000 156.7 B 61 % .6% 16 % 2001 80.8 B 2002 38.7 B 60 % 2003 31.7 B 120 2004 50.5 B 2005 67.2 B 2006 83.7 B 25 % 2007 133.7 B 80 24% 33 % 2008 154.8 B 449% 2009 175.4 B 57 % 2010 204.4 B 40 2011 288.3 B 2012 311.9 B

0 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

1995 – 2012 Economic Zone Investments : P 2.306 Trillion LOCATOR INVESTMENTS BY NATIONALITY ( 1995 – 2012 )

20.87 % Filipino 32.08 % 17.79 % American Japanese 10.15 % Dutch 5.95 % British 3.75 % Korean 3.01 % Singaporean 1.37 % German 1.14 % Swiss 3.89 % Others LOCATOR INVESTMENTS BY PRODUCT SECTOR ( 1995 – 2012 )

9.18 % Metals/Fabricated Metal Products 8.06 % Information Technology Services 7.01 % Tourism 5.60 % Transport (Shipbuilding, 41.50 % Car Parts, Equipment) Electronics / 4.95 % Electrical Machinery Semiconductors and Apparatus 2.55 % Medical, Precision and Optical Instruments 1.60 % Medical Tourism 1.39 % Rubber and Plastic Products 0.94 % Chemical and Chemical Products 17.22 % Other Manufactures TOTAL PHILIPPINE COMMODITY EXPORTS ( Billion U.S. Dollars )

Economic Zone Exports

2.7 4.3 6.5 10.6 13.3 15.8 20.0 19.5 22.7 27.2 30.7 31.6 35.1 39.0 38.0 28.9 36.1 36.3 60

50.5 51.5 50 49.1 47.4 48.0

39.7 41.3 40 38.1 38.4 36.2 35.0 35.2 32.2 29.5 30 25.2

20.5 45% 20 17.4 53% 45% 55% 47% 13.5 32% 42% 25% 55% 61% 65% 68% 58% 74% 70% 20% 75% 77% 10 39% 35% 75% 77% 77% 77% 30% 80% 26% 25% 23% 23% 23% 23% 75% 76% 25% 24% 0 10.7 13.2 14.0 14.6 16.2 19.2 18.1 12.7 12.5 9.0 9.0 9.6 12.3 11.5 11.1 9.5 15.4 11.7 Others

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 WHY INVEST IN THE PHILIPPINES FILIPINO WORKERS Among the Best in the World THE COUNTRY’S COMPETITIVE EDGE Literate, English – speaking, easy to train, hardworking and very friendly

In the IT Service Sector

Filipino Workers are considered the new breed of world-class service professionals and are referred to as Global Knowledge Workers because they are intelligent and able to compete at the highest levels among the best in the world. VERY FAST LEARNING CURVE OF FILIPINO WORKERS

• 8 weeks (2 months) to train Filipino workers

• Compared to 16 to 24 weeks (4 to 6 months) to train others BUSINESS-FRIENDLY POLICIES

• 100% Foreign Ownership of Companies;

• Basic rights of Investors are guaranteed (right to remit profits and pay foreign obligations, right to repatriate investments)

• Simplified investments procedures STRATEGIC LOCATION

Russia Canada

United Germany Kingdom EUROPE United States France of America China Korea Japan Middle Taiwan East Atlantic Ocean Hong Kong Philippines Africa India Thailand Malaysia Singapore Pacific Ocean South Indonesia America

Australia New Zealand VERY HOSPITABLE and COMFORTABLE SECOND HOME to EXPATRIATES

• Very friendly attitude of Filipinos towards foreigners • Availability of quality primary and secondary education Presence of International Schools • Housing closest to meeting western standards at very reasonable rental rates • Best sporting and recreational facilities Many world-class golf courses. • World class health care services

(Result of a survey conducted on expatriates in Asia) Philippines Most Popular Expansion Destination of American Companies in Asia

Source: Survey Conducted by the US Chambers of Commerce in ASEAN Manila Bulletin, September 4, 2012 WHY INVEST IN PEZA ECONOMIC ZONES

A. FISCAL INCENTIVES B. NON-FISCAL INCENTIVES FISCAL INCENTIVES for EXPORT COMPANIES

• Income Tax Holiday (ITH) or Exemption from Corporate Income Tax for four years, extendable to a maximum of eight years;

• After the ITH period, payment of the special 5% Tax on Gross Income, in lieu of all national and local taxes;

• Exemption from duties and taxes on imported capital equipment, spare parts, supplies, and raw materials;

• Domestic sales allowance of up to 30% of total sales;

• Zero Value-Added Tax (VAT) Rate on local purchases to include telecommunications, power, and water bills;

• Exemption from payment of local government taxes and fees. NON-FISCAL INCENTIVES for EXPORT COMPANIES

• Employment of foreign nationals;

• Special visa for foreign investors and immediate family members;

• Unequalled service by PEZA. PEZA IS A ONE-STOP SHOP

• Building and Occupancy Permits are issued by PEZA. • Import and Export Permits are issued by PEZA. • Automated and web-based Import & Export Procedures and e- Payment System (Paperless Transactions). • Special multiple-entry non-immigrant visa processed in PEZA. • Environment Clearance processed thru PEZA. • Exemption from Local Government Permits and Fees. • Registration requirements simplified, registration forms downloadable from website and uncomplicated, approval made easy. PEZA IS A “NON-STOP SHOP”

• At the zones, PEZA provides 24 hours a day, 7 days a week of continuous service to locator companies.

• The Director General herself and other PEZA officials are on call 24 hours a day, 7 days a week. In PEZA,

• NO RED TAPE • ONLY RED CARPET TREATMENT In PEZA, there is NO GRAFT NO CORRUPTION ISO 9001:2008

PEZA’s Quality Management System is certified ISO 9001:2008.

PEZA is certified ISO 9001:2008 for all its processes, at all levels, in all sites, nationwide. ONLY PEZA CITED FOR BEST PRACTICE AMONG ECONOMIC ZONES WORLDWIDE

“Under PEZA, the Philippines has shown dramatic improvements in Investment Climate. End Result – PEZA is a shining example of successful regulatory reform improving overall investment climate in the country”

Study of Gohan Akinci Foreign Investment Advisory Services (FIAS), International Finance Corporation of the World Bank (IFC-WB) We now have a Reformist Government that is open for business.

President Aquino’s Policy Thrusts: 1. Good Governance 2. Level Playing Field 3. Transparency 4. No Corruption

TOP ECONOMIC ZONE INVESTORS

TI (Philippines), Inc. Electronics American/Dutch Taganito Hpal Nickel Corp. Basic Metals Japanese Toshiba Information Electronics Japanese Tiger Resort Tourism American/Japan Sunpower Philippines Solar Cells American/Cayman Ibiden Philippines Electronics Japanese Coral Bay Nickel Corp. Basic Metals Japanese Amkor Technology Electronics American/Sing NXP Semiconductors Electronics Dutch Canon Business Machines Electronics Japanese Hoya Glass Disk Electronics Japanese Epson Precision Electronics Japanese TOP ECONOMIC ZONE INVESTORS

Travellers International Tourism Filipino HGST Philippines Electronics Dutch Rohm Electronics Electronics Singaporean Samsung Electro-Mech Electronics Korean St. Luke’s Medical Center Medical Tourism Filipino Tsuneishi Heavy Ind Shipbuilding Japanese STMicroelectronics, Inc. Electronics Swiss Integrated Micro Electronics British Panasonic Precision Electronics Dutch Sureste Properties, Inc. Tourism Filipino Toyota Autoparts Automotive Japanese TOP ECONOMIC ZONE INVESTORS Convergys IT American American Power Electrical Mach American Lufthansa Technik Air Transport German Pilipinas Kao, Inc. Chemical Products Japanese Nidec Phils. Electronics Japanese TDK Phils. Electronics Japanese Taiyo Yuden Electronics Japanese Analog Devices Electronics American/Dutch Green Future Innovation Agro-Industrial Filipino Accenture IT Dutch JP Morgan Chase Bank IT American On Semiconductor Electronics American TOP ECONOMIC ZONE INVESTORS Continental Temic Electronics German Schweitzer-Mauduit RTL Tobacco Products American Brother Industries Office Equipment Japanese Terumo Phil Medical Instrm’t Japanese Lexmark International Office Equipment Swiss House Technology Plastic Products Singaporean PASAR Basic Metals Filipino Samsung Electronics Electronics Korean Teletech IT American Stream International IT American/Dutch PV Tech Electrical Mach Singaporean Cypress Electronics American 290 KOREAN Locator Enterprises are operating in PEZA Economic Zones KOREAN ENTERPRISES IN PEZA ECONOMIC ZONES

INDUSTRY SECTOR NO. OF ENTERPRISES

MANUFACTURING 223 Electronics and Semiconductor 83 Garments and Textiles 49 Fabricated Metal Products 32 Rubber and Plastic Products 27 Paper and Paper Products 10 Recycling 9 Manufacturing, N.E.C. 6 Machineries And Equipment, N.E.C. 3 Chemicals and Chemical Products 2 Automotive and Motorcycle Products 1 Publishing and Print Media 1 Leather, Luggage, Handbags & Footwear 1 Food Products and Beverages 1 Furniture 1 INFORMATION TECHNOLOGY 16 WAREHOUSING AND STORAGE 15 HOTELS AND RESTAURANTS (TOURISM) 5

FACILITIES PROVIDERS 10

TOTAL 290 KOREAN ELECTRONICS/SEMICON COMPANIES

Samsung Electro-Mechanics Philippines Corp. Smart Electronics Manufacturing Service Philippines, Inc. (formerly Samsung Electronics Phil. Manufacturing Corp.) Yu Jin Optical Electronics, Inc. Littelfuse Philippines, Inc. Daeduck Philippines, Inc. Danam Philippines, Inc. Dae Kyung Philippines Co., Inc. Hysonic Philippines, Inc. Moatech Manufacturing Phils., Inc. Optis Philippines, Inc. KOREAN GARMENTS ENTERPRISES

Finetex Technology Phils. Corp K-Phil. Inc. Gold & Green Apparel S.D. Philippines, Inc. Fivics Corporation Phils-Jeon Garments, Inc. Philstar Hosiery, Inc. S & Yoo Apparel Corp. Sein Together International Philippines, Inc. Do First Ms Philippines Corporation KOREAN FABRICATED METAL ENTERPRISES

Shin Heung Electro-Digital, Inc. POS-CO Philippine Manila Processing Center Inc. Prima Tech Philippines, Inc. Samhwan Steel Philippines, Inc. Jin-Hung Technology Philippines Corporation Fortunecross Philippines, Inc. S & G Precision, Inc. Bugil Technology, Inc. Youngsin-Tronics, Inc. Sam Kyung Electronics, Inc. KOREAN RUBBER AND PLASTIC PRODUCTS ENTERPRISES

CP Eltech Phils. Inc. KJ Springs & Plastics Technology, Inc. P.L. Technology, Inc. LTech Machine Corporation Tri-Ocean Covering Corporation ADT Adtech Protective Film Philippines, Inc. Dong Wu Plastic, Inc. Philko Tech Corporation Shin Lim Industrial Corporation Academy Plastic Model Toy Co., Ltd. KOREAN PAPER ENTERPRISES

Thomas Asia Packaging Corporation Hwa Ryoung Corp. E-Soo Phils. Packaging Inc. A.P. Carton Box, Inc. Suhpack Philippines, Inc.

KOREAN RECYCLING ENTERPRISES

Mobilution, Inc. Sinojoy, Inc. S & S Industries Development, Inc. Dae Yun Co., Inc. Wow Recycling Mfg., Inc. KOREAN MANUFACTURING, N.E.C. ENTERPRISES

Ye-Sung Technology, Inc. J-Davan International, Inc. Hitech & C Phils. Co. Ltd. Younghwe Phils., Inc.

KOREAN TOURISM ENTERPRISES

Donggwang Clark Corporation Phil. BXT Corp. Jung Ahn Developers, Inc. Joil.Phil Corporation KOREAN LEATHER, LUGGAGE, HANDBAGS AND FOOTWEAR ENTERPRISES

Midland Manufacturing Phils., Inc.

KOREAN I.T. ENTERPRISES

U.ENAI Inc. Uccess Philippines, Inc. YBM PNT, Inc. Westgate Contact Solutions Inc. Education E-lamp Cebu, Inc. Chungdahm (Phils.), Inc. IWILLPASS Ltd., Inc. Philippines’ Competitive Advantage on Business Environment in Comparison to other Asian Countries

January 2012 Japan External Trade Organization (JETRO) Manila 1. Moderate Cost 1.1 Problems of Increasing Financial Costs (%) 0 10203040506070

China 64.1

Malaysia 61.5

Thailand 56.7

India 54.6

Vietnam 53.6

Indonesia 51.9

Philippines 46.7 1.2 Problems in Shortage of Land/Offices, Rising Land Prices/Rental 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 (%) India 32.0

Vietnam 18.0

Indonesia 17.2

Thailand 12.7

Malaysia 9.8

Philippines 5.8 1.3 Problems in Skyrocketing Payroll Costs (%) 0 10203040506070

Vietnam 61.3

Thailand 48.1

India 45.2

Indonesia 40.8

Malaysia 27.5

Philippines 18.2 2. Sufficient Labor Supply 2.1 Difficulty in Recruiting General Staff (%) 0 5 10 15 20 25 30 35 40

Vietnam 36.7

Malaysia 31.2

Thailand 31.1

China 28.6

Indonesia 4.4

India 4.2

Philippines 3.2 2.3 Low Rate of Worker’s Employment Retention (%) 0.0 10.0 20.0 30.0 40.0 50.0 60.0

Vietnam 48.7

Malaysia 42.5

India 41.6

China 39.0

Thailand 33.6

Philippines 30.6 2.4 Problems of Worker’s Competency (%) 0 102030405060

Myanmar 56.3

Vietnam 48.7

China 47.6

India 45.8

Malaysia 44.7

Indonesia 42.2

Thailand 40.9

Philippines 37.9 2.5 Difficulty in Quality Control (Manufacturing Only) (%) 0 1020304050

India 45.5

China 43.4

Malaysia 41.0

Thailand 40.7

Vietnam 39.3

Indonesia 28.7

Philippines 26.7 2.2 Number of Strikes/Lockouts (Unit: Number) ２００８ ２００９ ２０１０ ２０１１

Philippines ５４８２

Thailand 75314

Vietnam ７２０ ２１８ ４２２ ８５７

India 421 345 382 389

(Source) Philippines: National Conciliation and Mediation Board Thailand: Department of Labour Protection and Welfare Vietnam: Ministry of Labor, War Invalids & Social Affairs India: Ministry of Labour & Employment, Labour Bureau Aging Asian Countries but Phils. Working Age (15-64) Population

2.00 1.80 Philippines 1.60

1.40 Indonesia 1.20 Y2010=1 1.00 Thailand Vietnam 0.80 China 0.60 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 54 Data）UN, “World Population Prospectus,” The 2010 Revision KOREA BUSINESS SUPPORT CENTER - MANILA

1. Assists Korean Businessmen wanting to set up business in the Philippines; 2. Strengthen trade and economic relations between Korea and the Philippines; 3. Enable Korean Businessmen to have a better understanding of the Philippines’ trade, economic and investment policies. WHAT SOME KOREAN INVESTORS SAY ABOUT THE PHILIPPINES AND PEZA Sun Hung Kim, President Samsung Electronics Philippines Manufacturing Corporation (SEPHIL)

SEPHIL’s main line assembly process is the half-height operators inputting and assembling the parts of the drive/.

“SEPHIL has always believed in the bounty of the Philippines as an investment destination. SEPHIL is also proud of the company’s Filipino engineers who have developed a fully localized product for the international market.” Jung Soo Lee, President Samsung Electro-Mechanics Philippines Corp. Registered October 16, 1997

SEPHIL manufactures crystal oscillators at Calamba Premiere International Park

“The availability of the 24/7 systems, efficient and trusted workforce is the key advantage of being a PEZA registered company. I think this is the best government agency in the Philippines. Indeed, an asset of the Philippine Government. PEZA is a good Investment Partner!” Chun Sue Park, Chairman Hitec RCD Philippines, Incorporated Registered July 3, 1996

Hitec manufactures radio control systems, accessories and parts for use in model hobby related products at Cavite Economic Zone

“PEZA is graft-free, was right on the money. In the 13 years we have been located here, we have never experienced anything close to corruption that is very common in many places. Long live PEZA and another 10 year term for Director General de Lima.” Yong Jun Park, Chairman Phil BXT Corporation Registered December 11, 2008

Phil. BXT Corp established the Imperial Palace as a tourism economic zone in Mactan

“We are proud and honored that our project was conferred as the first PEZA Tourism Economic Zone in Cebu. But beyond that distinction, the privileges and incentives that go with the PEZA zone status are a big boost to our confidence in our investment in the Philippines. In the current world financial state, businesses need all the lifelines they could get, and PEZA has extended to us one of the longest and strongest life-line of all.” Kwan Sun Jin President Calamba Shinei Industry Phils., Corp.

Manufactures computer peripherals at Calamba Premiere International Park

“They were really impressed*, particularly with PEZA economic zones and enterprises. PEZA’s programs for attracting more investors and commitment of delivering utmost service to them created a very positive impression. We are planning to invite more Japanese and Korean small and medium business investors to visit PEZA economic zones in the very near future.”

“Again, we thank you for your commitment and continued support to our company.”

*Referring to Korean investors who visited their plant facility Oh Eng Leong Finance Director and Site Controller STMicroelectronics and ST-Ericsson (Philippines), Inc.

It is with great pleasure and honor working with the people in PEZA due to their professionalism, business acumen and high integrity. The service extended to us is unequalled and excellent.

I am very proud to say "PEZA has excelled very well, has contributed and will continue to contribute vastly to the development to the semiconductors industry in the Philippines". I have very strong confidence and trust in the leadership, all employees and officers of PEZA for their strong commitment to serve the nation and business community with true faith and dedication. AWAITING YOUR INVESTMENTS !