Choo Kyung-ho: "Increasing Economic Uncertainty... Financial and Price Stability Must Be Pursued Through Policy Coordination"

ADB Annual Meeting 'Korea Seminar Day'

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 2nd, "As uncertainties in the Asian economy are increasing, it is necessary to strengthen policy coordination to pursue financial stability and price stability."

At the opening address of the 'Korea Seminar Day' event hosted by the Asian Development Bank (ADB) Annual Meeting host country, Deputy Prime Minister Choo stated, "There is a need to proactively prevent economic crises by promoting financial cooperation such as strengthening regional financial safety nets, enhancing fiscal soundness, and implementing structural reforms."

This event was held to discuss policy issues in Asia and Korea's role, organized by the Korea Development Institute (KDI), and included domestic research institutions such as the Korea Institute for Industrial Economics and Trade, the Korea Institute for International Economic Policy, the Korea Institute of Public Finance, as well as experts from international organizations including the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the International Telecommunication Union (ITU), and the Asian Development Bank Institute (ADBI), along with academics from both domestic and international circles.

Deputy Prime Minister Choo emphasized, "Since the Asian region is vulnerable to global economic fragmentation, it is essential to enhance trade connectivity by expanding regional supply chains and excluding protectionism," adding, "Regional countries must strengthen cooperation to reduce the digital divide and share the benefits of digital innovation."

Masatsugu Asakawa, President of ADB, said in his congratulatory remarks, "As the host country, Korea plays a globally leading role in research, manufacturing, and technology, and I hope this event will serve as a platform for Asian countries to pursue recovery, solidarity, and reform."

Asia Development Bank Annual Meeting Korea Seminar Day Event
(Incheon=Yonhap News) Reporter Yoon Taehyun = On the morning of the 2nd, Chu Kyung-ho, Deputy Prime Minister of Economy, and Masatsugu Asakawa, President of the Asian Development Bank (ADB), along with other distinguished guests, took a commemorative photo at the '56th Asian Development Bank (ADB) Annual Meeting Korea Seminar Day' event held at Songdo Convensia, Yeonsu-gu, Incheon. 2023.5.2
tomatoyoon@yna.co.kr
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In the keynote session, a keynote dialogue was held between Professor Michael Kremer, the 2019 Nobel Laureate in Economics, and Cho Dong-chul, President of the Korea Development Institute. The session highlighted Professor Kremer’s major research that changed the paradigm of development economics and discussed the challenges for the Asian economy’s resurgence and Korea’s role centered on this research. Professor Kremer evaluated, "Korea’s economic growth with a high level of education is a representative case demonstrating the theory of human capital investment being crucial for economic development."

The first session that followed discussed the conditions of the Asian economy. Panelists assessed that while the Asian economy is recovering to pre-pandemic levels, issues of fiscal soundness such as increasing government debt and deficits could impact macroeconomic conditions. They also emphasized that joint efforts by governments, markets, and international organizations like ADB are required to address Asia’s structural problems including aging populations, climate change, and the digital divide.

The second session featured presentations and discussions on the reorganization of global supply chains and strengthening intra-Asian cooperation. Panelists noted that geopolitical factors such as major inter-country trade disputes primarily cause disruptions in global supply chains, which are expected to significantly affect Asian countries including Korea.

The subsequent session addressed the global economic downturn and digital transformation. Panelists pointed out that the global economic slowdown has continued since the pandemic, and the digital divide between developed and developing countries has widened. Regarding digital transformation, they viewed it as a new growth opportunity by enabling diverse cross-border business collaborations.

The final session diagnosed fiscal sustainability issues faced by various countries and discussed the role of fiscal policy and fiscal management systems to secure future fiscal sustainability. Panelists introduced the OECD’s fiscal management framework based on strong expenditure efficiency as a solution to achieve government fiscal soundness and discussed the necessity of increasing revenues.