Deputy Prime Minister Choi Sang-mok attended the World Bank (WB) Development Committee^* in Washington D.C. on October 25. He also held meetings with the President of the WB, Ajay Banga, Qatar’s Minister of Finance, Ali bin Ahmed AI Kuwari, as well as representatives from Moody’s and Euroclear.

^* Development Committee is a forum for discussing the WB’s development agenda, composed of representatives (Governors) from 25 member countries. It convenes every April and October.

[WB Development Committee]

The WB, following the approval of the Evolution Roadmap in October 2023, has presented measures aimed at pivoting itself into “A Future-Ready WBG” capable of addressing future challenge such as AI, climate change, and demographic shifts.

DPM Choi made three suggestions regarding the role of the WB in becoming future-ready.

First, he emphasized the importance of promoting increased investment by the private sector in developing countries. He shared that Korea plans to utilize the recently launched K-Finance Package[1] as a catalyst to expand investments in developing nations through various financial resources.

Second, he suggested that, as mentioned in this year’s World Development Report, the WB should focus on supporting the adoption of digital technologies, such as AI, to help countries overcome the middle-income trap and foster innovation. He welcomed the establishment of the Digital Vice Presidency in the WB (with Kim Sang-bu appointed as Vice President, effective September 2024) and proposed sharing Korea’s advanced digital technologies and experiences with developing nations in collaboration with the WB.

Third, he stressed the significance of the 21^st replenishment of the International Development Association (IDA^*) to continue supporting low-income countries in addressing global challenges. He called for collaborative efforts among the WB, donor countries, and recipient countries while proposing that all members work together to ensure the successful final meeting for the IDA replenishment, scheduled to be held in Korea from December 5 to 6.

^* IDA provides long-term, concessional financing to low-income countries to promote economic development. It conducts regular replenishments every three years to secure contributions, with the IDA-21 period spanning from July 2025 to June 2028.

[Meeting with the President of the WB]

Prior to the WB Development Committee meeting, DPM Choi met with the President of the WB Ajay Banga.

This was their fourth meeting this year, following sessions in January, April, and July. DPM Choi and President Banga noted that cooperation between Korea and the WB has been further strengthened through close communication, including an additional procurement briefing for Korean companies in November following the one held in May.

Both sides agreed to actively collaborate for the successful hosting of the 21^st IDA final meeting, the WB’s most important agenda of the year. They also discussed enhancing digital partnership through the WB Korea office and trust funds, considering Korea’s competitiveness in the digital field.

Finally, DPM Choi expressed gratitude for the WB’s interest in Korea’s growth history, as highlighted in its World Development Report published in August, which referred to Korea as a “growth superstar”. He requested greater attention to increasing Korean recruitment and representation in senior positions, reflecting Korea’s elevated status and contributions to the WB.

[Meeting with Moody’s Global Head]

DPM Choi held a meeting with Marie Diron, Global Head of Sovereign Ratings at Moody’s, a major global credit rating agency.

During the meeting, DPM Choi shared the current status of the Korean economy and highlighted the government’s policy efforts to raise the country’s growth potential through the dynamic economy initiative and structural reforms. Furthermore, he reiterated the government’s commitment to a solid fiscal policy stance, explaining ongoing efforts to minimize national debt growth through rigorous expenditure restructuring.

Diron expressed appreciation for his insights, noting that Korea’s high credit rating (Aa2) reflects the country’s solid economic fundamentals. She also spoke highly of Korea’s commitment to fiscal consolidation, mentioning that only few countries implement fiscal expenditure adjustments, and congratulated Korea on its recent inclusion in the World Government Bond Index (WGBI) as a testament to these efforts.

[Meeting with Qatar’s Minister of Finance]

DPM Choi met with Qatar’s Minister of Finance, Ali bin Ahmed AI Kuwari.

Above all, DPM Choi referred to Qatar’s areas of interest, raised during last October’s summit, such as investment, AI, data, agricultural technology, energy, and port and airport facilities, and proposed consistently shoring up cooperation in these fields.

Minister Al Kurwari expressed high regard for Korea’s technological expertise and requested Korea’s continued interest and support in these advanced technology sectors, especially in automating various facilities.

Both sides also committed to accelerating the signing of a Memorandum of Understanding (MOU) between their respective finance ministries and building a high-level cooperation channel to boost bilateral ties further.

[Meeting with Euroclear]

DPM Choi met with Euroclear’s Head of Strategy and Product Expansion for Issuers, Fund Managers and Sustainable Finance, Isabelle Delrome, who oversees omnibus accounts for government bond, to discuss final preparations and upcoming plans to assure a smooth entry of funds following Korea’s expected inclusion in FTSE Russell’s WGBI in the latter half of next year.

Delrome highlighted that Korea’s case is unprecedented that the establishment of the omnibus account for government bond (June 2024) was completed in less than a year after the initial contract (August 2023). She attributed this success to the Korean government’s strong policy commitment to aligning with global standards in foreign exchange and capital markets, its rapid response to investor feedback, proactive regulatory improvements, and active promotion efforts. As a result, investment demand through the omnibus account surged to 1.1 billion euros in just one month of launch and is anticipated to grow significantly.

Recognizing Euroclear’s contributions toward Korea’s remarkable progress through its continued support, DPM Choi also noted that, as the Korean government completes key regulatory improvements, Euroclear’s sustained assistance will be crucial in stabilizing these new systems ahead of the actual index inclusion next year, with its extensive network of global custodian banks and asset managers.