G20 Finance Ministers Meeting

 

Deputy Prime Minister Kim Attends the G20 Finance Ministers

Meeting and IMF/WB Annual Meetings

 

 

G20 Finance Ministers Meeting

 

Deputy Prime Minister Kim Dong Yeon attended the G20 Finance Ministers and Central Bank Governors Meeting on October 11-12 in Bali, Indonesia. The G20 agreed to respond to global economic risks through macroeconomic policies and structural reforms, as well as by strengthening the global financial safety net. The leaders also discussed ways to promote infrastructure development and investment in Africa.

 

At the meeting, DPM Kim spoke about ways to respond to global economic risks and emphasized the importance of doing more than just removing symptoms. In this regard, DPM Kim made three policy suggestions:

 

- Boost economy’s potential for growth: Work on structural reforms, improve productivity through innovation and deregulation, and increase investment on human capital

- Improve economic and financial soundness: Promote stable management of both public and private sector debts, and maintain soundness of financial institutions

- Promote a balanced growth: Increase cooperation with other countries to remove sources of trade conflicts and promote inclusiveness in domestic economy

 

 

IMFC Meeting

 

At the International Monetary and Financial Committee meeting held on October 13, DPM Kim raised concerns about rising global debt over the past 10 years since the global financial crisis, and warned against the possibility of financial market volatility. DPM Kim pointed out that the tightening of monetary policy in advanced economies can threaten market stability as emerging markets experience capital outflows. In this regard, DPM Kim stressed the importance of strengthening the global financial safety net and the role of IMF, especially in providing support to low-income countries to improve their debt management capability.

 

 

Sideline Meetings

 

DPM Kim had sideline meetings with his counterparts from the US and Uzbekistan, as well as with the heads of IMF, World Bank and credit rating agencies.

 

 

Talks with US Secretary of Treasury Steven Mnuchin

 

At the Korea-US finance ministers’ talks held on October 12, the seventh between the two leaders, currency and trade issues, as well as US secondary sanctions targeting Iran were main topics of discussion.

 

With regard to the US Treasury’s currency report to be released this month, DPM Kim explained how far away Korea has been from currency manipulation, showing the country’s FX market trends and government’s measures to increase transparency, as well as the current account balance and trade surplus with US.

 

US Treasury Secretary Mnuchin thanked for the explanation, hoping that the two countries will work together more closely.

 

With regard to the US national security concerns over auto imports, DPM Kim explained that auto trade has been successfully agreed at the Korea-US trade renegotiation, and that national security concerns over commercial vehicles are not appropriate when the two countries have been complementary in the auto industry. DPM Kim talked about Korean car manufacturers’ investment in the US, which is worth more than US $10 billion and has created more than 110,000 jobs.

 

US Treasury Secretary Mnuchin said that he had well understood DPM Kim’s explanation and that he would work to reflect Korea’s position.

 

With regard to US secondary sanctions targeting Iran, DPM Kim asked the US to consider granting sanctions exceptions and the won settlement system, and US Treasury Secretary Mnuchin suggested working closely together on the issue.

 

 

Talks with Uzbek Deputy Prime Minister Sukhrob Kholmuradov

 

At the Korea-Uzbekistan deputy prime ministers’ talks held on October 12, DPM Kim talked about the importance of Uzbekistan’s partnership in Korea’s Northern Economic Cooperation Initiative, and urged close cooperation to successfully carry out bilateral economic projects,[1] which had been previously agreed between the two countries. The Uzbek Deputy Prime Minister expressed his hope for increasing cooperation between the two countries.

 

 

Talks with IMF Managing Director Christine Lagarde

 

At the Korea-IMF talks held on October 13, DPM Kim signed an MOU to renew bilateral partnership on capacity development to help support IMF’s technical assistance and training programs in low-income countries.[2] DPM Kim also showed support for the conclusion of the 15^th General Review of Quotas.

 

 

Talks with World Bank President Jim Yong Kim

 

At the Korea-World Bank talks held on October 13, DPM Kim signed an MOU to renew the Korea-World Bank Partnership Facility (KWPF) to help support development projects in developing countries and share Korea’s experience of economic development.[3] World Bank President Jim Yong Kim pointed out that Korea ranked second in the World Bank’s Human Capital Index report. DPM Kim welcomed the result and stated that Korea will continue to cooperate with the World Bank to boost investment in human capital development in developing countries.

 

 

Meeting with heads of credit rating agencies Fitch and S&P

 

DPM Kim had talks with Fitch ratings’ global head of sovereign James McCormack and Asia-Pacific head Stephen Schwartz on October 12, as well as with S&P global ratings’ senior director for Asia-Pacific Kim Eng Tan and lead analytical manager for Asia-Pacific Vera Chaplin on October 13. With regard to the recent improvement in the inter-Korean relations, DPM Kim stated that it provides an opportunity for greater economic cooperation with North and to increase Korea’s long-term growth potential.

 

The officials from both agencies expressed favorable views on the strong fundamentals of the Korean economy. DPM Kim explained that while Korea has recently seen strong exports and consumption, the government will continue to work to improve job markets, as well as to diversify trade partners and improve industrial structure. DPM Kim also explained the government’s plans to continue expansionary fiscal policy, as well as its efforts to maintain medium- to long-term fiscal soundness.

 

 

Kick-off meeting for Korea-Pacific Alliance Finance Ministries’ Meeting

 

DPM Kim held a kick-off meeting on October 13 to launch a ministerial level cooperation channel between Korea, the Pacific Alliance[4] and the Inter-American Development Bank. The Korea-Pacific Alliance Finance Ministries’ Meeting will serve as a platform to promote exchange in human capital and technological expertise, as well as to share policy experience. DPM Kim suggested cooperation in five areas, which include ICT, infrastructure, climate finance, human capital development and sharing of policy experience. The meeting was attended by Mexico’s Finance Minister Jose Antonio Gonzalez Anaya, Chile’s Undersecretary of Finance Francisco Moreno, Colombia’s Vice Finance Minister Andres Pardo and Peru’s Deputy Finance Minister Betty Sotelo, as well as IDB President Luis Alberto Moreno.

 

Please refer to the attached PDF