Deputy Minister for International Affairs Jiyoung Choi convened the Korea-China-Japan Finance and Central Bank Deputies Meeting and attended the ASEAN+3[1] Finance and Central Bank Deputies Meeting in Kanazawa, Japan on December 6 to 7.

The meeting was attended by finance and central bank deputies of 12 countries, those from Korea, China and Japan in addition to 9 ASEAN member countries, as well as key figures from the ASEAN+3 Macroeconomic Research Office (AMRO) and the Asian Development Bank (ADB). The attendees discussed global and regional economic trends, policy directions, and the agenda for financial cooperation within the ASEAN+3 region.

The meeting marked the final round of the year for the discussions among the ASEAN+3 members. During the Korea-China-Japan Deputies meeting, in-depth discussions on financial cooperation within the region were led by Deputy Minister Choi. In the ASEAN+3 meeting, as the co-chair of the ASEAN+3 Meeting for 2024 (jointly with Laos), Korea actively voiced opinions on key issues including the review of regional economic trends and enhancement of financial security.

Above all, with respect to the current status of regional economy, AMRO projected a stable growth based on robust domestic consumption and rebound in tourism and exports among member countries. However, they expressed concerns about persistent high inflation and geopolitical tensions as potential risks, calling for ongoing vigilance. In particular, ADB highlighted the significance of the ASEAN+3 region in the Global Value Chains (GVCs) and that member’s collaboration in supply chain is crucial as countermeasures against geopolitical risks.

The Chiang Mai Initiative Multilateralisation (CMIM), the regional financial safety net, reached an agreement on measures for substantial institutional improvements that can actually benefit member economies. Members agreed on the launch of a new support program called the Rapid Financing Facility (RFF), which aims to provide swift financial support in the event of external shocks. This initiative is expected to receive final approval at next year's ministers meeting.

In addition, in an effort to increase the certainty of financial support, an agreement was made to review plans for reforming the CMIM funding structure, including paid-in capital, with a roadmap formulated for this purpose. Lastly, the meeting has achieved consensus on reducing spread applied to assistance provided under the CMIM aiming to improve accessibility to CMIM funds.

Deputy Minister Jiyoung Choi, highlighted the importance of the effective functioning of the regional financial safety net and stated that, as Korea will assume the joint chairmanship in 2024, it will actively lead discussions on reform of the funding structure. Along with a successful conclusion of follow-up measures on the agreed-upon projects such as the RFF and the reduction in spread, he expressed his commitment to dedicate all efforts toward preparing for the ASEAN+3 ministers meeting slated for May next year in Tbilisi, Georgia.

As for the AMRO related discussions that have been conducted over the past year, the addition of high-level positions were approved. Director Choi emphasized that this expansion would enhance AMRO's surveillance capability in fiscal and financial matters, where stable management have become more crucial since an outbreak of COVID-19, ultimately contributing to maintain economic stability in the region.

Please refer to the attached files.