By Focus | 2026-01-30

The Philippines is turning to South Korea for a wide range of defense assets as Manila modernizes its military amid rising tensions in the South China Sea.

The Armed Forces of the Philippines (AFP) is drawn to Seoul's offer of high-quality equipment, punctual delivery timelines and status as a US ally, Korea JoongAng Daily reported January 15.

The shift comes as maritime friction intensifies. Philippine and Chinese vessels engaged in an average of "12.1 interaction days per month" between August 2024 and May 2025, the Asia Maritime Transparency Initiative found.

China considers more than 80% of the South China Sea its territory, even though an international court rejected that argument in 2016.

The surge in encounters has accelerated Manila's implementation of Re-Horizon 3, the final phase of a multiyear military modernization program. With a $35 billion budget, Re-Horizon 3 focuses on strengthening the country's naval and aerial defense capabilities as the AFP shifts its emphasis from internal security to external defense.

Securing the 'first island chain'

This buildup aligns with broader regional shifts. The US government's 2025 National Security Strategy underscores the geopolitical importance of the "first island chain" as part of an effort to counter China's regional influence.

That chain includes Japan, Taiwan and the Philippines.

The US strategy urges allies such as Japan, South Korea and Australia to increase defense spending and strengthen their own military capabilities under a burden-sharing model.

Philippine-S. Korean partnership options

To support the initiative, the 2026 General Appropriation Act signed by Philippine President Ferdinand Marcos Jr. allows for "foreign and domestic financial arrangements" to help fund the acquisition of advanced systems.

"The Korean government should be considering different ways where emerging nations can acquire Korean-made defense products with reduced financial burdens," Jang Won-joon, a defense analyst affiliated with Jeonbuk National University in Jeonju, South Korea, told Korea JoongAng Daily.

Seoul could further ease Manila's financial burden by offering a "subscription-like program that divides the total cost into yearly payments," he said.

"Since launching the three-phase Horizon defense modernization initiative in 2012, Manila has worked within that framework to upgrade its defense capabilities, both to keep pace with its neighbors and to respond to Beijing’s increasing incursions into the Philippine EEZ [Exclusive Economic Zone]," according to an International Crisis Group report published last August.

The Philippine navy is a longtime partner of shipbuilder HD Hyundai Heavy Industries (HHI), which has delivered 10 naval vessels to the fleet. Most recently, HD HHI delivered two Miguel Malvar-class frigates -- the BRP Miguel Malvar and BRP Diego Silang -- last May and December.

Under a $578 million contract with HHI signed last December, the navy is set to receive two more frigates by 2029. HHI's naval support center at the Subic Bay shipyard enables in-country maintenance, repair and operations support, which reduces operating costs and has reinforced Manila's continued purchases of HHI's ships. The company said it specializes in "not just selling ships by ships as individual products, but more as a cohesive system" to ensure the fleet operates effectively, according to Korea JoongAng Daily.

Submarine, fighter jet purchases possible

Manila is also considering its first-ever submarine purchase, with a budget of 110 billion PHP ($1.9 billion) for at least two submarines. It is evaluating offers from France's Naval Group and another South Korean contractor, Hanwha Ocean, but HHI is highlighting its track record with the Philippine navy. HHI's bid would offer superior system integration and maintenance for the existing fleet, the firm contends.

The success of the Korean-built FA-50 in Philippine counterterrorism operations has positioned the KF-21 Boramae, a larger, supersonic fighter, as a primary contender for the Philippines' next multirole fighter project.

Manila has requested delivery of the KF-21 between 2027 and 2029, a timeline that would make the Philippines one of the first export customers for the platform, South Korean outlet Reportera reported in early January.

The KF-21 holds a "competitive edge on price and performance" and could be "upgraded to be stealth-compatible" in the future, offering Manila a sophisticated, long-term deterrent, NH Investment & Securities analyst Rhee Jae-kwang told Korea JoongAng Daily.