Joint Declaration by Finance Ministers of Korea, China, and Japan: "Shift from Universal to Selective Support"

"From Broad Measures to Targeted Actions for Vulnerable Groups"
"Long-term Fiscal Sustainability and Financial Stability Maintenance"
Strengthening Trilateral Cooperation for Robust Regional Recovery and Sustainable Growth

[Asia Economy Reporter Jang Sehee] The finance ministers and central bank governors of Korea, China, and Japan held a virtual meeting on the 3rd, agreeing to respond to uncertainties in economic recovery and strengthen regional financial cooperation. At the meeting, there was also an opinion that universal support should be shifted to selective support considering sustainability.

This meeting is a consultative body that pre-checks the agenda of the Korea-China-Japan finance ministers and central bank governors meeting and discusses economic cooperation measures among the three countries.

Attendees at the meeting included Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance of Korea; Lee Ju-yeol, Governor of the Bank of Korea; Taro Aso, Deputy Prime Minister and Minister of Finance of Japan; Haruhiko Kuroda, Governor of the Bank of Japan; Cai Ji, Vice Minister of Finance of China; and Li Bo, Deputy Governor of the People's Bank of China.

In a joint statement released after the meeting, they said, "Economic recovery is uneven and uncertain both regionally and globally, and downside risks may increase," adding, "Measures should be shifted to target vulnerable groups to maintain long-term fiscal sustainability and financial stability." They also pledged to "make efforts to provide necessary support measures."

They further stated, "China, Japan, and Korea will strengthen cooperation and communication not only with ASEAN countries but also among themselves for a robust regional recovery and sustainable growth," and said, "We will demonstrate our leadership in the ASEAN+3 financial cooperation process."

The Bank of Korea attended the 21st Korea-China-Japan Finance Ministers and Central Bank Governors Meeting held on the morning of the 3rd. From the left in the photo: Gwak Sang-gon, Head of Financial Cooperation Team; Yoo Sang-dae, Deputy Governor; Lee Ju-yeol, Governor; Bang Hong-gi, Head of Agenda Research Group; Oh Geum-hwa, Director of International Cooperation Bureau. Photo by XXX

Additionally, efforts to enhance the operability of the Chiang Mai Initiative Multilateralization (CMIM) were emphasized. They stressed, "Through discussions on the future direction of CMIM, we will continue to strengthen regional financial safety nets such as CMIM and discover new economic and financial cooperation tasks within the year." Furthermore, they agreed to continue supporting the enhancement of the capacity of the ASEAN+3 Macroeconomic Research Office (AMRO) in terms of budget, personnel, and other aspects for member countries' economic analysis and policy recommendations.

Deputy Prime Minister Hong said, "Korea minimized the impact of COVID-19 through effective quarantine measures and expansive fiscal and monetary policies, recovering its pre-crisis gross domestic product (GDP) level faster than major advanced countries," adding, "Growth is expected to exceed previous forecasts." He also explained, "COVID-19 damage was concentrated on vulnerable groups," and "We will further strengthen inclusive growth policies to enhance sustainability."

Meanwhile, next year's meeting of the Korea-China-Japan finance ministers and central bank governors is scheduled to be held in Colombo, Sri Lanka, coinciding with the annual meeting of the Asian Development Bank (ADB).

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