[Gyeongju APEC] IMF Chief: "Korean Economy to Rebound to Potential Growth Rate Next Year"...Lee: "Future Looks Positive" (Comprehensive)

Lee: "KOSPI Surpasses 4,000... Rapid Economic Recovery"
"Fiscal Sustainability in Mind... Performance-Oriented Budget Management"
IMF Chief Proposes "Continued Bold Structural Reforms"

On the 31st, President Lee Jaemyung met with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), and remarked that the recent breakthrough of the KOSPI index surpassing 4,000 points for the first time demonstrates that the Korean economy is recovering rapidly. Managing Director Georgieva stated that she expects the Korean economy to rebound to its potential growth rate next year.

President Lee received Managing Director Georgieva, who visited Gyeongju, Gyeongbuk for the 2025 Asia-Pacific Economic Cooperation (APEC) Summit, and discussed the global and Korean economic outlook, economic policy directions, and growth strategies.

President Lee Jae-myung and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), shake hands before their meeting at the APEC Summit venue, Gyeongju Hwabaek Convention Center, Gyeongbuk, on the 31st. Photo by Yonhap News

During the meeting, President Lee said, "In fact, the IMF is associated with unpleasant memories for Korea, but I hope that going forward, the IMF will play a preventive role so that such events do not recur. It was because we were not sufficiently prepared, so I ask you to provide advice, monitor, and take preventive measures globally so that the world economy can grow safely."

Managing Director Georgieva responded, "The days when Korea had to receive financial support due to past crises are now truly a thing of the distant past. Now, Korea serves as a model for other countries and is in a position to provide financial support to others."

Managing Director Georgieva suggested to President Lee that bold structural reforms and cooperation with other countries are important for raising the potential growth rate.

She said, "Korea must continue the bold structural reforms it has pursued so far. Through this, the dynamism, innovation, and performance of the economy will be enhanced. In a highly volatile global economy, the strength of the domestic economy is ultimately crucial."

Managing Director Georgieva added, "I hope Korea will continue to strengthen cooperation with other countries. The more interconnected the region becomes globally, the stronger our economy and the global economy will be."

Additionally, Managing Director Georgieva mentioned that she recently met Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol in Washington, D.C., where she heard about Korea’s super-innovation economic plan. She said, "Korea will become a model for other countries in terms of dynamism. I was also greatly inspired by Korea’s shipbuilding industry."

Kim Yongbeom, Senior Presidential Secretary for Policy, briefed the press after the meeting, stating that President Lee said, "The cause of low growth lies in polarization, and the key to the national economy is to achieve inclusive growth, which can resolve polarization and ensure sustainable growth."

Kim added, "However, President Lee pointed out that while promoting inclusive growth may benefit the country as a whole in the long term, there are difficulties in implementing this policy in individual countries due to resistance from certain groups that may incur short-term losses. He requested that international financial institutions such as the IMF and the World Bank conduct more research to demonstrate that inclusive growth is beneficial to the entire nation in the medium and long term."

He continued, "Managing Director Georgieva agreed that, for economic growth, it is essential to enhance productivity through innovation, and that the inclusive growth emphasized by President Lee is also very important. She responded that a special session on inclusive growth will be organized at the IMF conference to be held in Thailand in March next year."

President Lee Jae-myung is meeting Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), at the Gyeongju Hwarang Convention Center in Gyeongbuk, the venue for the APEC Summit, on the 31st. Photo by Yonhap News

President Lee and Managing Director Georgieva also discussed the economic outlook during their meeting.

President Lee said, "Since the launch of the new administration, political uncertainty has been swiftly resolved, and the Korean economy is recovering rapidly. The KOSPI index has surpassed 4,000 points for the first time in history, and both domestic and foreign investors have a positive outlook on Korea’s future."

He continued, "Expectations for government policies and the prompt implementation of an additional supplementary budget have improved private consumption sentiment, revitalizing the economy. I hope this momentum will continue into next year."

Managing Director Georgieva explained, "Based on various indicators such as recent trends in consumption and exports, the Korean economy is recovering, and I expect this trend to continue, with Korea rebounding to its potential growth rate next year."

President Lee told Managing Director Georgieva that the Korean government is accelerating changes in artificial intelligence (AI) and digital technologies, and is working to create new growth engines through an AI-driven transformation and the implementation of a super-innovation economy.

He also emphasized that, to achieve sustainable growth, the government is actively advancing the financial and foreign exchange markets to ensure that capital flows into productive finance, such as corporate investment and industrial innovation.

In particular, he explained that, while considering the sustainability of public finances, the government will operate the budget in a performance-oriented manner so that it can serve as a catalyst for the economy.

President Lee highly praised the efforts of the IMF and Managing Director Georgieva to promote global economic growth and stability, and stated, "Korea will actively participate in the IMF’s efforts to support low-income and vulnerable countries, drawing on its own experience of economic development."