MANILA – The Department of Finance (DOF) denied reports of a supposed P28-billion official development assistance (ODA) loan between the Philippines and South Korea, clarifying that no such agreement exists.

“With regard to the supposed P28 billion official development assistance (ODA) loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the agency said in a statement.

The clarification came after South Korean President Lee Jae-myung claimed in a social media post that a fraudulent project linked to the Philippines had been stopped before any funds from Seoul’s Economic Development Cooperation Fund (EDCF) were disbursed.

Lee said the cancellation spared South Korea from unnecessarily wasting 7 trillion won in taxes and praised the media for exposing the alleged irregularity.

“The media is the observer of power and the salt that prevents corruption in society, it plays a key role in achieving a just world,” he wrote.

The DOF, while refuting the existence of the loan, stressed that the Philippine government remains committed to transparency in dealing with development partners.

“We reaffirm to our bilateral partners that the Philippine government will match their trust and confidence with full transparency and accountability,” the agency said.