Manila and Seoul are undertaking a feasibility study on a proposed program initiated by Korea that aims to generate investments in Philippine agriculture and other sectors through a multi-industry cluster approach.

Undersecretary Berna Romulo Puyat of the Department of Agriculture (DA) said the Multi-Industry Cluster Program (MIC) "is envisioned to serve as a catalyst for the establishment of major industries through high-level cooperation between major actors in the agriculture sector."

Among the benefits that MIC participants can reap from this program, said Puyat, are increased agricultural productivity, the emergence of a manufacturing sector in areas covered, a stronger financial system and more jobs.

"The MIC aims to create synergy among major industries like manufacturing and services to drive economic growth," she said. "It also seeks to address the underdeveloped sectors in the country by putting up investments in areas such as agriculture, labor, and manufacturing."

A Memorandum of Understanding (MoU) on this MIC feasibility study was signed by Secretary Alberto Romulo of the Department of Foreign Affairs (DFA) on behalf of the Philippines and Minister Yu Myung-hwan of Korea's Ministry of Foreign Affairs and Trade (MOFAT) during the official visit of President Arroyo to the Republic of Korea last May 30-31.

Puyat said that this feasibility study was proposed by Korean Ambassador Choi Joong-Kyung during the celebration of the 60th Anniversary of diplomatic relations between the Philippines (RP) and Korea at the Blue House last January 2009.

In Korea , the MIC led to "productive synergism between the agriculture, infrastructure, manufacturing and knowledge-based industries," she said. "It is hoped that the same effect could be achieved by the adoption of the MIC in the Philippines."