IMF's Role as a Policy Advisor Highlighted by Deputy Prime Minister Choi
Meetings Held with Germany, European Union, and Luxembourg
Choi Sangmok, Deputy Prime Minister and Minister of Economy and Finance, who is visiting the United States, called on the International Monetary Fund (IMF) on the 25th (local time) to support improvement in uncertain situations by providing country-specific policy recommendations that reflect the changing trade environment. In a meeting with Moody's, the global credit rating agency, he explained Korea's fiscal stance and efforts to respond to both domestic and external uncertainties.
Choi Sangmok, Deputy Prime Minister and Minister of Economy and Finance, is meeting with Marie Dillon, Global Head of Sovereign Ratings at Moody's, at the International Monetary Fund (IMF) in Washington D.C., USA, on the 25th (local time). Ministry of Economy and Finance
IMF's Role as a 'Policy Advisor' Is More Important Than Ever
On the 25th, Deputy Prime Minister Choi attended the International Monetary and Financial Committee (IMFC) as the Governor representing Korea at the IMF in Washington D.C., sharing views with finance ministers and central bank governors from major countries on the current state of the global economy, response measures, and the role of the IMF. The IMFC is a key advisory body that presents the IMF's policy direction and strategy to the IMF Board of Governors and is composed of representatives from 25 IMF member countries.
Deputy Prime Minister Choi emphasized that, amid heightened trade tensions and policy uncertainty, the IMF's role as a 'Trusted Advisor' is more crucial than ever. He also requested that the IMF conduct sophisticated analyses of the ripple effects that recent changes in trade policy have on each country's macroeconomy, and that it provide objective and country-specific policy analyses and recommendations to help member countries navigate uncertain situations.
Deputy Prime Minister Choi pointed out that structural changes such as climate change and increased trade policy risks are exacerbating difficulties for low-income and vulnerable countries. He urged the IMF to continue supporting capacity building and debt sustainability for these countries. He also called for the implementation of the 16th General Quota Review agreed upon in 2023, as well as the 17th review that reflects the changed economic status of member countries, to strengthen the quota-based resource structure, which is the IMF's core funding mechanism.
He expressed gratitude for member countries' support for the Korean economy and democracy, and noted that, despite the political situation, Korea's economy has remained stable thanks to the trust of international organizations and global allies.
At this IMFC meeting, member countries reached a consensus that the recent increase in policy uncertainty, including trade policy, is a major risk to the global economy. They also reaffirmed the need to respond to such risks through strengthened macroeconomic surveillance and lending capacity, structural reform efforts, and international cooperation.
Meetings with Germany, EU, Luxembourg, Ukraine to Discuss Cooperation
On the 24th, Deputy Prime Minister Choi met with Joerg Kukies, State Secretary at the German Federal Ministry of Finance, and on the 25th, held talks with Valdis Dombrovskis, Executive Vice President of the European Commission for Economy and Productivity. They exchanged views on key international issues such as the need to maintain a multilateral trading system and address global imbalances. They also reached a consensus on strengthening economic cooperation between Korea, Germany, and the EU.
Choi Sangmok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is taking a commemorative photo with Valdis Dombrovskis, European Union (EU) Executive Vice President, at the International Monetary Fund (IMF) in Washington D.C., USA, on the 25th (local time). Ministry of Economy and Finance
On the 25th, Deputy Prime Minister Choi met with Yuriko Roth, Minister of Finance of Luxembourg, to discuss cooperation in the financial sector between the two countries. With the Luxembourg Minister of Finance scheduled to visit Korea in the fall of next year, they shared opinions on concrete measures to expand investment opportunities and agreed to maintain close communication going forward.
In his meeting with Serhii Marchenko, Minister of Finance of Ukraine, Deputy Prime Minister Choi confirmed Korea's commitment to supporting Ukraine's reconstruction. Minister Marchenko expressed his gratitude for Korea's support. Deputy Prime Minister Choi pledged to support priority projects in Ukraine, such as transportation, housing, and energy, through the $2 billion Economic Development Cooperation Fund (EDCF) memorandum of understanding (MOU). He also emphasized cooperation with Korean companies.
Moody's Shows Interest in Korea's Fiscal Stance and Trade Policy
On the 25th, Deputy Prime Minister Choi also met with Marie Dillon, Global Head of Sovereign Ratings at Moody's. This meeting took place about three months after their last virtual meeting in January.
Deputy Prime Minister Choi explained the recent political developments and stressed that Korea's national system is being operated in an orderly manner according to the Constitution and laws. He also outlined recent economic trends and introduced the government's policy efforts, such as swift and essential supplementary budgets, to respond to uncertainties including U.S. trade policy.
Moody's expressed appreciation, noting that Deputy Prime Minister Choi's explanations would be helpful in assessing the Korean economy. They also showed great interest in Korea's fiscal stance and policies to address trade-related uncertainties.
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