Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok attended the first day of the Second G20 Finance Ministers and Central Bank Governors Meeting held on April 23 in Washington, D.C., to exchange views with his counterparts on recent global economic and financial issues.
* (Day 1, April 23) Global economic and financial sector issues (Session 1)
(Day 2, April 24) International financial architecture (Session 2), Barriers to economic growth to Africa (Session 3)
DPM Choi concurred with the views of international organizations and major economies that global economic uncertainty has significantly increased, driven by heightened policy uncertainty, elevated levels of public and private debt, volatility in global financial markets, and climate and demographic risks. He proposed three key areas for future discussions among G20 members to address rising global economic risks: ①Joint efforts to establish a sustainable multilateral trading system, ②strengthening response frameworks to cope with increasing financial market volatility, and ③structural reforms to secure mid- to long-term growth drivers.
Above all, he emphasized that Korea is a beneficiary of an open and barrier-free multilateral trading system and contributes as one pillar of the global supply chain. He called on the international community to jointly seek solutions to secure the sustainability of the multilateral trading system, including addressing global imbalances. In addition, he mentioned that in order to preemptively respond to growing concern over heightedned financial market volatility, member states should safeguard fiscal soundness as the ultimate backstop in times of crisis, while reassessing and bolstering the global financial safety net. Lastly, he stressed the importance of voluntary and preemptive structural refroms at the national level in addressing structural challenges such as demographic shifts and climate change, noting that sharing best practices among G20 nations would be highly beneficial.
Furthermore, DPM Choi held bilateral meetings with finance ministers from major economies and heads of international organizations on the sidelines of his visit to Washington.
Upon his arrival in Washington on April 22, he met with Polish Finance Minsiter Andrzej Domański, whose country currently holds the Presidency of the Council of the European Union. The two discussed ways to shore up bilateral economic partnership, including defense industry collaboration such as the export of K2 tanks, and the convening of the second Korea-Poland Economic Dialogue. DPM Choi noted that both Korea and Poland share the commonality of being strategically located and highly dependent on external trade, expressing his hopes for the successful conclusion of the second export contract for K2 tanks. Minister Domański remarked that defense cooperation has deepened ties between Korea and Poland, and highly appreciated the Korean government’s efforts to support Ukraine’s reconstruction.
DPM Choi also met with World Bank (WB) President Ajay Banga. Marking the 70th anniversary of Korea’s accession to the WB Group, DPM Choi and President Banga agreed to step up partnership in the digital sector, including the establishment of a Digital Knowledge Center at the WB’s Korea Office and the creation of a new Korea Digital Trust Fund whithin this year. In particular, DPM Choi asked for President Banga’s support for increasing the recruitment of Korean nationals and expanding their representation in senior positions in the WB, as part of efforts to boost bilateral cooperation. Not only that, he met with Canadian Minister of Finance François-Philippe Champagne on the sidelines of the G20 meeting to share views on global uncertainties.
On April 23, DPM Choi held a meeting with Chinese Finance Minister Lan Fo’an to exchange a broad range of views on key international financial issues, including cooperation with multilateral development banks (MDBs). DPM Choi, noting the 10th anniversary of the launch of the Asian Infrastructure Investment Bank (AIIB), expressed his hopes for the successful hosting of the upcoming Annual Meeting in Beijing. He discussed ways to enhance cooperation on MDBs with Minister Lan and proposed that both countries work closely together to ensure tangible outcomes at next month’s ASEAN+3 Finance Ministers’ Meeting, where China will serve as the chair. He also requested China’s continued attention and cooperation for the successful advancement of the Asia-Pacific Economic Cooperation (APEC) Finance Minsiters’ Meeting, which Korea is chairing this year.
Please refer to the attached files.
