Amid heightened external economic volatility from the Middle East war, Korea and Japan's fiscal authorities discussed ways to strengthen cooperation.
According to the Ministry of Economy and Finance on the 14th, Deputy Prime Minister and Minister Koo Yun-cheol, who is visiting Japan, exchange views on global and regional economic conditions with Japan's Finance Minister Satsuki Katayama at the 10th Korea-Japan Finance Ministers' Meeting held at the Ministry of Finance in Tokyo.
The ministry said Deputy Prime Minister Koo and Finance Minister Katayama assessed that the global economy is maintaining solid growth but faces several risks, including geopolitical tensions.
The two sides, in particular, discussed in depth the current situation in the Middle East and financial market volatility, and were said to have agreed on the need for close cooperation to ensure a stable energy supply. They also noted the potential to increase investment in artificial intelligence (AI) to spur economic growth.
Deputy Prime Minister Koo and Finance Minister Katayama also expressed grave concern over the recent sharp declines in the won and the yen. They reaffirmed the need to closely monitor the foreign exchange market and take appropriate action against excessive volatility and disorderly movements in exchange rates.
The ministry also said the two sides agreed to promote diversification of critical mineral supply chains and to work closely together on supply chain policy.
They also expressed support for efforts by the Association of Southeast Asian Nations (ASEAN) +3 (Korea, China and Japan) to enhance the effectiveness of the Chiang Mai Initiative Multilateralization (CMIM), the region's financial safety net.
The two countries also agreed to actively cooperate on global issues in multilateral forums such as the Group of 20 (G20) and the Group of Seven (G7). Korea has been invited to the G7 finance ministers and Central Bank governors' meeting for three consecutive years, starting with Japan's invitation in 2023.
They also agreed to step up cooperation between the two countries' customs authorities, centered on the Korea-Japan customs commissioners' meeting to be held in Korea in April this year.
In addition, the two sides assessed that North Korea's cryptocurrency theft could be used to support weapons of mass destruction and ballistic missile programs, posing a serious threat to international security.
The two sides agreed to continue vice minister-level regular meetings between fiscal authorities and staff exchange programs, while also maintaining cooperation among policy research institutes.
This was the first Korea-Japan finance ministers' meeting since President Lee Jae-myung took office. The two countries agreed to hold the 11th Korea-Japan finance ministers' meeting in Korea within the next year.