Koo Yoon-chul Holds Consecutive Meetings with IMF and World Bank Chiefs: "Overcoming Low Growth through AI Grand Transformation and Super-Innovation Economy"

Discussing Ways to Enhance Productivity in Developing Countries Through AI

On October 17 (local time), Koo Yoon-chul, Deputy Prime Minister and Minister of Strategy and Finance, introduced Korea's 'AI Grand Transformation' and 'Super-Innovation Economy' strategies as solutions to overcome global low growth at the International Monetary and Financial Committee (IMFC) held in Washington D.C., USA.

Deputy Prime Minister Koo attended the IMFC as a representative of the International Monetary Fund (IMF) member countries, meeting with finance ministers and central bank governors from major countries. He stated, "We are expanding investments in super-innovative technologies such as semiconductors, small modular reactors (SMRs), and green hydrogen, and are building a public-private partnership ecosystem."

At this meeting, the IMF identified the global low growth issue and rising geopolitical uncertainty as major challenges. The IMF also diagnosed that sustainable growth must be pursued through restoring fiscal soundness and enhancing productivity.

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul, 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 shaking hands and taking a commemorative photo with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), on the 17th (local time) before their meeting at the IMF. (Photo by Ministry of Economy and Finance)

Deputy Prime Minister Koo emphasized, "It is essential to conduct sophisticated analyses of the ripple effects of major policies such as trade policy and digital transformation, and to support each country's response through policy recommendations tailored to their national circumstances." He added, "For each country to overcome the crisis of low growth and high debt, their own efforts are crucial."

On the same day, Deputy Prime Minister Koo met with Ajay Banga, President of the World Bank, to discuss ways AI technology can contribute to improving productivity and quality of life in developing countries. Both sides agreed on the need to expand cooperation utilizing AI, and, with the signing of the administrative agreement for the Digital Trust Fund solely funded by Korea, they committed to strengthening the foundation for AI cooperation between the two institutions.

Deputy Prime Minister Koo also requested increased attention to the recruitment and appointment of Koreans to high-level positions within the World Bank, along with the expansion of AI cooperation.

Subsequently, Deputy Prime Minister Koo met with James Longsdon, Global Head of Sovereign Ratings at Fitch Ratings, to explain Korea's growth policy direction. He stated, "The AI Grand Transformation and Super-Innovation Economy are core strategies for securing new growth engines for the Korean economy," and added, "Through active fiscal investment in these areas, we aim to simultaneously raise the growth rate and ensure the long-term sustainability of public finances."

In response, Fitch expressed that "the Korean government's policy direction has helped enhance our understanding of the economy," and showed deep interest in Korea's growth trajectory and fiscal policy.

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 and Central Bank Governors Meeting and the International Monetary Fund and World Bank (IMF/WB) Annual Meetings, is shaking hands and taking a commemorative photo with Ajay Banga, President of the World Bank (WB), on the 17th (local time) before their meeting at the World Bank (WB). (Photo by Ministry of Strategy and Finance)

Finally, Deputy Prime Minister Koo met with Kristalina Georgieva, Managing Director of the IMF, and provided a detailed explanation of Korea's AI-based growth strategy. He stated, "We are strengthening AI education for all citizens, expanding data accumulation, and developing language models in various sectors including bio industries."

Managing Director Georgieva responded by saying, "The new government's economic and fiscal policy direction aligns with the IMF's recommendations," and expressed appreciation for Korea's support of the '16th General Review of Quotas (GRQ)' to strengthen the global financial safety net.

Through his participation in the IMFC and a series of meetings, Deputy Prime Minister Koo actively shared the Korean government's new growth strategy and vision for international cooperation, expressing his commitment to leading a new growth paradigm centered on innovation and AI, even amid the current phase of global low growth.