Attendance at the G20 Finance Ministers Meeting
"Quickly Restoring Market Confidence After the Martial Law Shock"
Emphasizing the Need to Seek Solutions to Enhance the Soundness and Dynamism of the Global Economy
Kim Beom-seok, First Vice Minister of Strategy and Finance, emphasized that South Korea is quickly recovering market confidence from the shock of the emergency martial law situation on the international stage, and discussed cooperation measures to respond to changes in U.S. tariff policies with senior officials from Canada and Germany.
The Ministry of Strategy and Finance announced on the 28th that Vice Minister Kim attended the first 2025 G20 Finance Ministers and Central Bank Governors Meeting held in Cape Town, South Africa, on the 26th and 27th (local time).
Choi Sang-mok, Acting Prime Minister and Deputy Prime Minister兼Minister of Strategy and Finance, did not attend to focus on domestic issues, so Vice Minister Kim represented the ministry. This G20 meeting was the first multilateral meeting of major economic and financial leaders since the inauguration of the new U.S. administration under Donald Trump, but many finance ministers from major member countries including the U.S., Japan, the European Union (EU), and China were absent.
This meeting was held under the slogan of 'Solidarity, Equality, Sustainability' and consisted of a total of seven sessions discussing cooperation measures for various global risks, including 'World Economy, International Financial System, Infrastructure, International Taxation, Fiscal Health, Financial Sector Issues, and Sustainable Finance.'
Vice Minister Kim stressed, "We must seek fundamental solutions to enhance the soundness and dynamism of the economy in response to structural challenges such as the spread of protectionism, climate change, and technological transitions." In particular, he mentioned, "Despite the shock of the emergency martial law in December last year, South Korea was able to quickly restore market confidence based on fiscal soundness enhancement, risk management in the real estate and financial sectors, and adherence to market-driven economic growth principles," emphasizing that "each country should strive to build reliable and sustainable fundamentals."
Vice Minister Kim introduced, "Emphasizing the importance of bold structural reforms to strengthen economic dynamism, South Korea is shifting the framework of economic management to be private-sector centered, easing unnecessary regulations, expanding investment in future advanced industries, and promoting fundamental economic transformation through structural reforms in four major areas." He urged the G20 to continue discussing meaningful policies and successful cases regarding structural reforms.
Vice Minister Kim requested member countries' attention to key tasks such as MDB reform and resolving debt vulnerabilities to build a resilient international financial system, and expressed overall support for discussions on digital tax implementation, domestic resource mobilization in developing countries, and tax inequality.
During the two-day meeting, Vice Minister Kim also held talks with key figures from major countries such as Canada and Germany. On the 26th, he met with Patrick Haley, Canada's Assistant Deputy Minister for International and Finance, to discuss bilateral cooperation measures in response to recent changes in U.S. tariff policies. They also agreed to strengthen supply chain cooperation in key sectors such as secondary batteries. As South Korea hosts the Asia-Pacific Economic Cooperation (APEC) this year and Canada chairs the Group of Seven (G7), they agreed to actively cooperate in concretizing agendas and enhancing cooperation to respond to global economic uncertainties.
He also exchanged views with Heiko Thoms, State Secretary of the German Ministry of Finance, on Germany and the EU's response strategies to recent changes in U.S. tariff policies and cooperation measures with South Korea. Both sides emphasized the importance of the Korea-Germany macroeconomic dialogue and agreed to actively cooperate in response to the uncertain global economic situation.
In a meeting with Mathias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD), Vice Minister Kim confirmed OECD's willingness to support various agendas of this year's APEC summit and exchanged views on cooperation measures between the OECD and South Korea. He also requested continued cooperation to expand the overseas deployment of Korean personnel.
The Ministry of Strategy and Finance stated that Vice Minister Kim also met with Ajay Banga, President of the World Bank (WB), and Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB), requesting their interest and cooperation to promote the participation of Korean companies in projects and the expansion of Korean personnel deployment.
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