President Gloria Macapagal-Arroyo witnessed the signing today of a land lease agreement between Hanjin Heavy Industries and Construction Co., Ltd. (HHICC) and the Subic Bay Metropolitan Authority (SBMA) for the Korean company to construct and operate a shipyard at the Subic Bay Freeport Zone (SBFZ) in Zambales.

The signing ceremony was held at Malacanang’s Rizal Hall.

Hanjin will invest about $1 billion over the next 10 years in a steel structure fabrication yard in the 230-hectare land covered by the lease agreement.

The shipyard is expected to be finished by 2016.

Once operational, the shipyard will build liquefied natural gas (LNG) carriers and very large container carriers (VLCC) for customers around the world.

HHICC is represented in the country by its local corporation, HHICC-Philippines, Inc.

The Korean investment is also expected to boost economic activity at the country’s premiere freeport zone and generate 30,000 to 40,000 jobs.

Trade and Industry Secretary Peter Favila said the Korean investment shows that foreign investors’ confidence in the country remains despite the destabilization plots against the government.

He said investors, particularly officers of HHICC, were impressed by the President’s handling of attempts by the political opposition and other critics of the administration to destabilize the government.

"HHICC Chairman Mr. Nam Ho Cho congratulated the President for being able to take stock of the situation over the past days. They have decided to put in $1 billion in new investments at a time when all these events are taking place. Clearly, this is positive sign that the confidence in this government remains," Favila said.

Among those who witnessed the signing of the agreement were Public Works and Highways Secretary Hermogenes Ebdane Jr., Labor Secretary Patricia Sto. Tomas, Transportation and Communications Secretary Leandro Mendoza and Finance Secretary Margarito Teves.