South Korean President Yoon Suk Yeol and Philippine President Ferdinand Marcos Jr. reached an agreement on Monday to enhance defense collaboration as their nations upgraded their relationship to a strategic partnership in response to increasing security challenges in the region.

During discussions at the Philippine presidential palace, the leaders addressed various issues, including the ongoing tensions in the South China Sea and the Korean peninsula. They also formalized agreements related to coastguard cooperation and nuclear energy.

“President Marcos and I have initiated a new chapter in our partnership by elevating our ties to a strategic partnership,” stated Yoon, who is on a state visit to Manila, marking the first visit by a South Korean leader in over ten years. In a joint press conference with Marcos, Yoon emphasized that South Korea would actively participate in the Philippines’ multi-billion-dollar military modernization efforts amid escalating tensions with China in the South China Sea.

South Korea is actively seeking to increase its global defense exports, particularly following Russia’s invasion of Ukraine, which has created opportunities for substantial contracts in Europe, the Middle East, and Asia. The nation has successfully sold FA-50 fighter jets, corvettes, and frigates to the Philippines and aims to rank as the world’s fourth-largest arms exporter by 2027.

As part of its modernization efforts, the Philippine military is in the process of acquiring advanced military assets, including fighter jets, submarines, and missile systems, to enhance its territorial defense and maritime security capabilities.

During discussions, the two leaders reaffirmed their commitment to maintaining an international rules-based order, particularly regarding navigation safety in the South China Sea. Yoon emphasized that the international community would not tolerate North Korea’s nuclear program or its “reckless provocations.” Elected in 2022 with a promise to expand South Korea’s nuclear power sector, Yoon announced the signing of a memorandum of agreement (MOU) to conduct a feasibility study on the long-idle Philippine Bataan Nuclear Power Plant (BNPP), with a goal of exporting ten additional nuclear power plants by 2030.

The BNPP, which was sanctioned by the late dictator and namesake of Marcos, has remained inactive since its completion in 1984, despite the $2.3 billion investment and its initial promise of providing energy security during the oil crisis of the 1970s.

The Philippines is looking to harness nuclear power as a feasible baseload energy source while aiming to phase out coal plants to achieve climate objectives and enhance energy security. Following his time in Manila, Yoon will travel to Singapore on Tuesday and Wednesday, before proceeding to Laos the next day to participate in the regional summit with leaders from the Association of Southeast Asian Nations and other Asian nations.