Mr. Kim Hong-Ki

May 22, 2003 SEC OPINION NO. 25-03 Mr. Kim Hong-Ki Vice Consul Embassy of the Republic of Korea 18th Floor, Pacific Star Bldg., Makati Ave., Makati City S i r : This pertains to your letter dated 25 March 2003 requesting opinion on the following queries, which we have restated: 1. Whether or not under existing law, it is possible for the Korean community to acquire land and building for a Korean International School and afterwards donate the said school to the Korean Embassy; and 2. Whether or not the Korean Embassy can register the school with the Commission as owner of the land and building of the Korean school. In reply to your first query, Section 7 Article XII of the 1987 Philippine Constitution explicitly provides that: "Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations or associations qualified to acquire or hold lands of the public domain." Moreover, under Section 2 Article XII of the 1987 Constitution, it provides that in the exploration, development, and utilization of the country's natural resources the only persons qualified are Filipino citizens, and corporations or associations at least sixty per cent of whose capital is owned by Filipino citizens. Based on the aforesaid provisions of the Constitution, it appears that the Korean community can not acquire lands unless the said Koreans form a corporation at least sixty per cent of which are owned by Filipino citizens. Hence, the Korean Embassy can neither own land for the Korean community nor can the latter own and donate the same to the Korean Embassy as this will be an indirect circumvention of the Constitution. Based on the foregoing, your second query is answered in the negative. Please be guided accordingly. ADTEaI Very truly yours, (SGD.) VERNETTE G. UMALI-PACO General Counsel