Minister Choo Kyung-ho and Governor Lee Chang-yong Attend Korea-China-Japan Meeting... Discuss Economic Cooperation Measures

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jung] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and Bank of Korea Governor Lee Chang-yong attended the 22nd Trilateral Meeting of Finance Ministers and Central Bank Governors of Korea, China, and Japan held via video conference on the 12th to discuss economic cooperation measures.

This meeting is a consultative body where the three countries?Korea, China, and Japan?strengthen economic cooperation and pre-examine the agenda for the ASEAN+3 (the 10 ASEAN countries including Thailand, Vietnam, Indonesia, and Korea, China, Japan) Finance Ministers and Central Bank Governors Meeting.

Deputy Prime Minister Choo said, "Over the past two years, Korea has minimized the economic shock caused by the pandemic through effective quarantine measures and bold policy responses, achieving a growth rate of 0.7% in the first quarter of this year, slightly exceeding market expectations. However, we are closely monitoring downside risks due to increased uncertainty in the global financial markets."

He explained, "In response, the new government plans to focus its economic policies on supporting small business owners affected by the pandemic, stabilizing the livelihood economy, timely response to domestic and external risks to stabilize the macroeconomy, and enhancing the vitality of the private sector, markets, and enterprises."

Deputy Prime Minister Choo stated, "First, we will strive to realize a true overcoming of the pandemic crisis through full damage support, ease inflationary pressures caused by high oil prices, and reduce the burden on people's livelihoods." He also emphasized, "To effectively respond to common challenges such as economic recovery from the pandemic, rebuilding multilateral international cooperation, and low birthrates and aging populations, the three countries of Korea, China, and Japan must communicate and cooperate closely."

Governor Lee Chang-yong mentioned at the meeting the risks facing the Korean economy, such as the rapid interest rate hikes by the U.S. Federal Reserve (Fed) and the slowdown in China's growth, and their impacts on the real economy, financial, and foreign exchange markets. He added that given the worsened income inequality since COVID-19, high inflation, and weakened growth are expected to have a greater impact on vulnerable groups, so it is necessary to find an optimal policy balance.

At the meeting, the three countries assessed that although the regional economy showed steady growth last year due to high vaccination rates and pandemic support measures, continuous vigilance is required regarding increased uncertainties and risks. Accordingly, they agreed that while efforts to stabilize the macroeconomy and secure long-term fiscal sustainability should continue, policies supporting full economic recovery from the pandemic should be maintained for the time being.

Regarding regional financial cooperation, they positively evaluated institutional improvements such as changes to the Chiang Mai Initiative Multilateralization (CMIM) reference interest rate and procedures for providing local currency, confirming the importance of proposed institutional improvements under discussion, including reviewing the spread rate and establishing procedures for providing third-country currencies.

The next meeting will be held in Incheon, Korea, where the Asian Development Bank (ADB) Annual Meeting will take place next year.

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