In a statement on social media, President Lee emphasized that the project had not yet advanced to the spending stage, which allowed the government to prevent misallocation of funds from the Economic Development Cooperation Fund (EDCF). He also praised investigative media for exposing the irregularities.
“The most fortunate thing is that the business has not yet been completed, so business expenses… have not been spent,” Lee said. “It has a great significance in that it has prevented the risk of poverty and corruption in advance without wasting 7 trillion won in taxes unnecessarily.”
The project in question was the PBBM Rural Modular Bridge Project, a $510 million (₩710 billion) initiative proposed by the Philippine government to build 350 modular steel bridges across Luzon, Visayas, and Mindanao by 2028. The project was named after Philippine President Ferdinand “Bongbong” Marcos Jr.
According to an investigative report by Hankyoreh 21, South Korea’s Ministry of Economy and Finance had initially rejected the project in April 2024, citing its high risk of insolvency and corruption. Officials noted difficulties in managing 350 scattered construction sites, licensing issues across multiple local governments, and the Philippines’ weak infrastructure oversight system.
Moreover, the project drew scrutiny due to the involvement of Company A, a local Philippine contractor with a history of substandard work and corruption allegations in a similar modular bridge program in the 1990s.
Despite these red flags, the project was revived under political pressure. Investigative findings revealed that Rep. Kwon Seong-dong, a senior lawmaker of the ruling People Power Party and close ally of former President Yoon Seok-yeol, lobbied the Ministry of Finance to reconsider its rejection. Kwon reportedly argued that supporting the bridge project could help South Korea secure nickel mining rights from the Philippines.
In July 2022, Kwon personally visited Manila as a special envoy, delivering a letter from then-President Yoon to President Marcos Jr. He later maintained close involvement in Korea-Philippines economic forums where the bridge project was raised. By late 2024, despite earlier rejection, the Export-Import Bank of Korea downsized the project to 70 bridges and ordered a new feasibility study, effectively keeping the initiative alive.
The report also highlighted the role of Philippine political and business elites, including Luis “Chavit” Singson’s LCS Group, which expressed interest in participating. Philippine officials reportedly bypassed normal consultation channels by directly lobbying Korean institutions and lawmakers.
President Lee’s announcement to halt the project marks a sharp departure from the previous administration’s stance. He credited the media for its role in revealing how the EDCF — meant to assist developing nations — was at risk of being misused through political meddling.
“The media is the observer of power and the salt that prevents corruption in society,” Lee said. “It plays a key role in achieving a just world.”
Observers say the decision could strain diplomatic ties with the Philippines, which had branded the project a top priority for rural development. However, Seoul maintains that several other joint infrastructure projects with Manila remain ongoing, including the $905 million Panay-Guimaras-Negros bridge project.