On November 19, First Vice Minister Kim Beomseok held a meeting with the International Monetary Fund (IMF) team, led by Mr. Rahul Anand, Mission Chief for Korea. The mission team is in Korea from November 7 to November 20 as part of the 2024 Article IV Consultation*.
* Under Article IV of the IMF Articles of Agreement, this annual consultation reviews the overall economic conditions of member countries, including macroeconomic, fiscal, and financial aspects, and culminates in the release of country-specific reports following approval by the Executive Board.
Mission Chief Rahul Anand shared the results of the two-week annual consultation with VM Kim and exchanged views on key issues. He spoke highly of Korea’s strong economic
fundamentals, noting that the country has effectively navigated multiple global shocks with appropriate macroeconomic policies. He projected that Korea would see a gradual recovery in
domestic demand next year alongside moderation in export growth, reaching to its potential growth rate.
Mr. Anand also commended the government’s swift and appropriate response mechanisms amid the transition to the new U.S. administration. He recommended bolstering innovation
and diversifying export markets to maintain export competitiveness in a changing trade environment. In addition, he highlighted the government’s recent efforts to improve Korea’s
foreign exchange market structure and the expected benefits of Korea’s inclusion in the World Government Bond Index (WGBI), which would expand transaction volumes and market
participants, ultimately contributing to reduced volatility.
Mr. Anand welcomed the fiscal soundness policy stance reflected in the 2025 budget proposal and the focus on expenditure restructuring. He emphasized the importance of securing
fiscal space through more proactive fiscal soundness measures, considering future fiscal demands from aging demographics. In this context, the Mission Chief positively assessed
Korea’s recent pension reform initiatives and efforts to institutionalize fiscal rules.
In response, VM Kim agreed with Mr. Anand’s overall assessment of the Korean economy and stated that the government would dedicate its full efforts to maintaining a stable recovery
trajectory despite elevating external uncertainties.
A press conference on the results of the 2024 Article IV Consultation will be held on November 20 at the Government Complex-Seoul.
Please refer to the attached files.
