Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Strategy and Finance, asked the International Monetary Fund (IMF) to serve not as a "commentator on crises" but as an "architect of cooperation," acting as a hub for global macro policy coordination and multilateral cooperation.
On the 17th (local time), Koo attended the International Monetary and Financial Committee (IMFC) in Washington, D.C., as an IMF executive director representative and met with finance ministers and Central Bank governors from major countries.
At the meeting, the IMF assessed that uncertainty in the global economy is expanding due to the war in the Middle East. It also emphasized to each country the need for policy responses suited to fiscal and currency conditions and the importance of structural reforms to break out of global low growth.
Koo said, "We agree with the IMF's recommendation that we should support vulnerable institutional sector while maintaining fiscal soundness," adding, "Korea is swiftly formulating and executing an extra budget without expanding national debt." He then asked the IMF to play a role as an architect of cooperation. IMF Managing Director Kristalina Georgieva said, "Korea has sufficient fiscal space," adding, "Korea's efforts for medium-term fiscal soundness will continue to help ensure stable fiscal management."
Koo also attended the Group of Seven (G7) finance ministers and Central Bank governors' meeting at the invitation of France, the G7 chair. At the meeting, he discussed with finance ministers from major countries including the United States and Japan ways to strengthen G7–G20 linkages to resolve imbalances.
Koo said, "Not only specific countries but both surplus and deficit countries making efforts at the same time can minimize the negative spillover effects of global imbalances." He added, "If countries and economic blocs with strong economies take the lead in expanding human capital investment such as artificial intelligence (AI) education and in structural reform efforts such as pension reform, middle-power and emerging countries will also join to help solve the problem."