A gigantic 200,000 sq.metre industrial complex for Korean agricultural machinery manufacturers has broken ground in the city of Cabanatuan, Philippines recently and scheduled for completion by 2034.
These manufacturers under the umbrella of Korea Agricultural Machinery Industry Cooperative (KAMICO) are expected to expand their foothold in the Philippines and modernise the country’s underdeveloped farming sector.
KAMICO is investing in the construction of the US$100 million complex while the Philippine government has agreed to provide incentives for cooperative member companies that plan to set up operations there. These include a 75-year land use permit, infrastructure support such as electricity and water, and exemptions from Philippine tariffs and provincial taxes.
The complex will also be the Philippines’ first agricultural machinery production complex, signifying the country’s aim to rely less on imported machinery like tractors and seeders etc in the future, while at the same time boost the efficiency and productivity of farmers.
Southeast Asia has been a relatively small export market for Korean agricultural machinery manufacturers, accounting for just 4.3% of its total exports last year. However KAMICO expects the regional market to grow as KAMICO aims to diversify its export markets apart from relying heavily on the US and Canada. Exports of Korean farm machinery to Southeast Asia rose from US$37 million in 2022 to US$52 million in 2023. Currently, the Philippines is the largest importer of Korean machinery in the region, taking up 60% share.
Globally, Korean farm machinery exports rose 8.6% from a year earlier, reaching US$11 billion as of October 2025.
