Hong Nam-ki Attends WB Development Committee... Proposes 'Korean New Deal' to the International Community

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance [Image source=Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki proposed the 'Korean New Deal' to the international community, gaining sympathy.

According to the Ministry of Economy and Finance on the 17th, Deputy Prime Minister Hong Nam-ki attended the World Bank (WB) Development Committee held via video conference on the night of the 16th and suggested turning the crisis caused by the novel coronavirus infection (COVID-19) into an opportunity for a solid economy. He introduced S·D·G as the three major tasks for this purpose.

S stands for Social Safety Nets, D for Digital, and G for Green. In other words, it is the Korean New Deal to overcome the COVID-19 crisis.

The WB Development Committee is an advisory body that discusses the WB's development agenda and is composed of representatives (Governors) from 25 member countries.

Deputy Prime Minister Hong said that Korea will invest $140 billion by 2025 in strengthening social safety nets, the Digital New Deal, and the Green New Deal sectors to participate in achieving the international community's Sustainable Development Goals (SDG).

David Malpass, President of the WB, and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed strong agreement with the three tasks presented by Deputy Prime Minister Hong and responded that international organizations will continue efforts aligned with them.

As the chair country of the G20 (Group of Twenty) International Financial System Working Group, Deputy Prime Minister Hong also expressed gratitude to the member countries, WB, and IMF for the extension of the Debt Service Suspension Initiative (DSSI) for low-income countries and the agreement on debt restructuring.

Regarding the DSSI for low-income countries, he requested that all official creditors, including commercial banks and policy banks, participate equally, asking for cooperation from the member countries.

The member countries agreed with this and reportedly reached a consensus that some low-income countries facing debt difficulties need additional financial support beyond debt relief.

This content was produced with the assistance of AI translation services.