Deputy Prime Minister and Minister of Economy and Finance Koo Yun Cheol, who arrived in Washington, D.C. to attend the fourth meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG) and the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, participated in the first-day sessions over a working dinner. At the meeting, he exchanged views with fellow finance ministers and central bank governors on global economic and financial stability issues as well as the international financial architecture.
At the first session on global economic and financial stability issues, DPM Koo proposed adopting a strategic fiscal policy that supports growth through bold fiscal investments in high-productivity sectors to address structural transitions such as technological innovation and demographic changes amid heightened global uncertainty. In particular, he introduced Korea’s “Ultra-Innovative Economy” and “AI Transformation” initiatives aimed at enhancing the nation’s potential growth rate. Under these initiatives, he shared investment plans for AI-driven projects such as AI semiconductors and manufacturing, as well as cutting-edge technologies including power semiconductors and small modular reactors (SMRs). At the same time, he expressed concern over the growing global imbalances emerging as a risk factor for the world economy and underscored the need for G20-level discussions to resolve these imbalances. Since it was his first appearance at a multilateral forum since taking office as DPM, he highlighted the significance of the G20 as the premier forum for international economic cooperation and expressed his commitment to continuing active participation going forward.
In the second session on the international financial architecture, DPM Koo welcomed the G20’s first implementation report on multilateral development bank (MDB) reforms and the Ministers’ Declaration on Debt, while outlining directions for future action. He emphasized the need to continue advancing MDB reforms through enhanced evaluation frameworks and called for both the active utilization of innovative financial instruments by MDBs and the improvement of investment environments in recipient countries to promote blended finance. He also underscored the importance of swift and orderly debt restructuring and enhanced debt transparency based on the Common Framework to alleviate debt vulnerabilities in developing countries. He emphasized the need for preemptive support to prevent countries facing temporary liquidity crises from falling into default, while calling for responsible structural reforms by debtor nations. Lastly, he noted that non-bank financial institutions (NBFIs) could amplify risks such as capital flow volatility and foreign exchange risk, urging continued discussions on capital flow to safeguard macro-financial stability.
Meanwhile, DPM Koo attended the G7 High-Level Dialogue on Artificial Intelligence, Financial Crimes, and Fraud, held at the invitation of Canada, the 2025 G7 Presidency. Participants expressed concern over the cross-border proliferation of financial crimes and fraud facilitated by rapidly advancing AI technologies, and agreed on the imperative of strengthening international cooperation to address emerging threats posed by new types of financial scams and criminal activities.
DPM Koo also held a bilateral meeting with Canadian Finance Minister François-Philippe Champagne, during which they discussed recent bilateral trade issues and exchanged views on economic cooperation, including the development of critical minerals and AI. DPM Koo introduced Korea’s AI transformation policy and emphasized his expectation for continued close cooperation with Canada, which has established a dedicated ministerial position for AI and is currently developing its national AI strategy. He also conveyed appreciation for Canada’s invitations to Korea to participate in this year’s G7 meetings, including the June G7 Summit, the July extended session of the G7 Finance Ministers’ Meeting (attended by Deputy Minister for International Affairs Choi Ji-young), and the October G7 High-Level Dialogue, while requesting sustained support and attention going forward.
Please refer to the attached files.
