Former Deputy Secretary Lipton, Who Pressured Korea During the Foreign Exchange Crisis, Returns to Treasury as Yellen's Advisor

Major Foreign Media, Sources Report
Figure Who Pressed Korea for Strong Restructuring During IMF Crisis
Possible Request for Korea's Help in International Cooperation Amid COVID-19

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] David Lipton, former U.S. Deputy Secretary of the Treasury, who was known to have been involved in the IMF's bailout negotiations with South Korea during the foreign exchange crisis, is reportedly set to appear as a troubleshooter for Treasury Secretary Janet Yellen.

He is said to be assigned to handle overseas-related Treasury Department affairs to ease Secretary Yellen's workload, drawing attention to whether he will cooperate with the South Korean government.

On the 2nd (local time), a major foreign media outlet cited sources reporting that former Deputy Secretary Lipton is likely to return to the Treasury Department as an advisor to Secretary Yellen.

It is analyzed that Lipton will assist Secretary Yellen by focusing on overseas affairs. Yellen will concentrate on domestic economic recovery, while Lipton will share responsibilities related to overseas issues.

Specifically, Lipton is expected to take charge of cooperation related to the Group of Seven (G7) and Group of Twenty (G20), leading international cooperation and economic recovery efforts in response to the novel coronavirus disease (COVID-19).

Former Deputy Secretary Lipton is known as a figure who communicated with the IMF during South Korea's 1997 foreign exchange crisis and exerted strong pressure on South Korea's reform direction.

Paul Blustein, a reporter for The Washington Post, revealed in his book "Chastening," which covers the IMF foreign exchange crisis, that the U.S. imposed harsh bailout conditions on the IMF to enforce a forced economic restructuring of South Korea tailored to U.S. interests. Blustein testified that Deputy Secretary Lipton monitored negotiations between the South Korean government and the IMF in South Korea at that time.

The White House and the Treasury Department did not respond to questions regarding Lipton's return to the Treasury Department, according to the foreign media.

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