Hong Nam-ki "DSSI Extension Contributes to Securing Basic Strength... Digital Tax Considers Differences Between Industries"

Attendance at the 4th G20 Finance Ministers Meeting

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is attending the "4th G20 Finance Ministers and Central Bank Governors Meeting" held via video conference at the Government Seoul Office Building on the afternoon of the 14th.

[Asia Economy Reporter Kwangho Lee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, emphasized, "The extension of the Debt Service Suspension Initiative (DSSI) for low-income countries and comprehensive debt restructuring will contribute not only to securing fiscal capacity for low-income countries in the short term but also to building the foundational strength for economic recovery in the medium to long term."

Deputy Prime Minister Hong made these remarks on the afternoon of the 14th during the '4th G20 Finance Ministers and Central Bank Governors Meeting' held via video conference.

The G20 Finance Ministers meeting was originally scheduled to be held in Washington D.C., USA, but was conducted virtually due to the COVID-19 pandemic.

The meeting discussed ▲ the extension of debt service suspension for low-income countries and updates to the G20 action plan for COVID-19 response ▲ the digital tax blueprint and other financial issues.

First, the G20 finance ministers agreed to extend the debt service suspension period by six months, from the end of this year to June next year, considering the continued difficult economic conditions in low-income countries.

Deputy Prime Minister Hong stated, "It is essential that all official creditors of the G20 fully participate and that private creditors voluntarily join to provide practical assistance to low-income countries in overcoming difficulties."

He continued, "Regarding comprehensive debt restructuring, for smooth coordination between creditors and debtor countries during the actual debt restructuring process, continuous cooperation within the G20 to further specify the basic framework principles agreed upon this time is crucial."

Deputy Prime Minister Hong also commented on digital taxation, saying, "Considering that the digital services sector generates more market profits through digitalization compared to manufacturing, the differences between the digital services sector and manufacturing should be taken into account."

Regarding the introduction of a global minimum tax, he proposed, "Let us design the system so that the introduction of the minimum tax does not negatively affect substantive business activities that do not pose tax avoidance risks."

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