MANILA — The Department of Foreign Affairs (DFA) said it is in talks with the Embassy of the Republic of Korea to clarify reports on a supposed P28-billion infrastructure loan, following claims by a South Korean opposition leader that the project had been scrapped.

The DFA issued the statement after the Department of Finance (DOF) categorically denied on Tuesday that such a loan agreement exists under South Korea’s Economic Development Cooperation Fund (EDCF).

“With regard to the supposed PHP 28 billion official development assistance (ODA) loan between South Korea and the Philippines, the Department of Finance categorically clarifies that no such loan exists,” the DOF said.

The issue stemmed from a Facebook post by South Korean President Lee Jae-myung, who said a fraudulent project linked to the Philippines was blocked before funds were released, sparing South Korea from wasting 7 trillion won in taxes.

Lee lauded the role of media in exposing the matter, saying, “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.”

The DOF, while dismissing the loan’s existence, assured development partners that the Philippine government remains committed to transparency and accountability.

The DFA said it would “continue to speak with the Embassy of the Republic of Korea with a view to clarifying matters with ROK.”