Koo Yoon-chul at G20: "Global Economic Uncertainty Rising... Future Growth Engines Must Be Strengthened"

On October 15 (local time), Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-chul presented strategies for fiscal policy to address global economic uncertainty and directions for reforming the international financial system at the 4th G20 Finance Ministers and Central Bank Governors' Meeting and the International Monetary Fund and World Bank (IMF/WB) Annual Meetings held in Washington, D.C., USA.

During the first session of the G20 ministerial meeting, which included a dinner, Deputy Prime Minister Koo addressed the topic of "Global Economic and Financial Stability Issues," diagnosing that structural transitions such as technological innovation and demographic changes are increasing uncertainty across the global economy. He stated, "In this period of transition, it is essential to implement bold fiscal investments in high-productivity sectors. Strategic fiscal policy is needed to strengthen growth potential."

Deputy Prime Minister Koo introduced South Korea's "Ultra-Innovative Economy" and "AI Grand Transformation Strategy" as concrete examples. He shared the government's investment plans in major AI projects such as AI semiconductors and AI manufacturing, as well as in ultra-innovative technologies including power semiconductors and small modular reactors (SMRs). He explained, "Proactive fiscal investment in advanced technology sectors is key to expanding future growth engines."

Deputy Prime Minister Koo also expressed concern about the accumulation of global imbalances emerging as a risk factor for the world economy. He said, "Global imbalances can intensify instability in the global financial market," and proposed that "in-depth discussions at the G20 level are necessary to address this issue." He further emphasized the significance of the G20 as the highest-level forum for international economic cooperation and stated that South Korea will contribute responsibly to international discussions.

Koo Yoon-chul, Deputy Prime Minister and Minister of Strategy and Finance, who is visiting Washington D.C., USA to attend the G20 Finance Ministers' Meeting and the International Monetary Fund and World Bank (IMF/WB) Annual Meetings, is seen shaking hands and greeting Fran?ois-Philippe Champagne, Canadian Minister of Finance, on the 15th (local time) at the American Bankers Association before their meeting.

In the second session, he welcomed the first implementation report on G20-level multilateral development bank (MDB) reforms and the "Ministerial Declaration on Debt Sustainability," and suggested directions for follow-up actions. The Ministerial Declaration on Debt Sustainability is an official statement adopted by ministers from various countries to discuss and resolve issues of debt sustainability internationally. Regarding MDB reform, Deputy Prime Minister Koo stated, "We must continuously advance the evaluation system and actively utilize MDBs' innovative financial products to promote blended finance."

He also emphasized the importance of practical measures to alleviate debt vulnerabilities in developing countries. Deputy Prime Minister Koo said, "Based on the Common Framework, debt restructuring must be carried out swiftly and in an orderly manner, and debt transparency must be enhanced in parallel." He continued, "Proactive financial support is needed to prevent developing countries experiencing temporary liquidity crises from falling into default, and debtor countries themselves must also responsibly pursue structural reforms."

Meanwhile, at the invitation of Canada, which holds the G7 presidency this year, Deputy Prime Minister Koo attended the "G7 High-Level Dialogue" and participated in a session on "AI, Financial Crime, and Fraud." He also held a bilateral meeting with Canadian Minister of Finance Francois-Philippe Champagne to discuss trade issues between the two countries, cooperation on critical mineral development, and collaboration in future industries such as AI. He introduced that "the Korean government is pursuing national industrial innovation through the 'AI Grand Transformation Policy,' has established a dedicated ministerial post for AI, and is formulating a national AI strategy."