IMF Managing Director: "South Korea's External Credibility is High... No Possibility of Crisis Like in the Past"

Choo Kyung-ho Meets IMF Managing Director Georgieva in Washington DC
Positive Assessment of South Korea's Foreign Exchange Reserves and Current Account
"South Korea's Fundamentals Are Strong and External Credibility Is High"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, who is visiting Washington DC, USA to attend the G20 Finance Ministers' Meeting and the IMF/WB Annual Meetings, is shaking hands and taking a commemorative photo with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), at the IMF headquarters on the 13th (local time).
Photo by Ministry of Economy and Finance

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), assessed that "there is no possibility of a crisis like in the past" for the South Korean economy.

On the 13th (local time), Georgieva made this remark in response to a question about the 'IMF's objective view on the South Korean economy' during a meeting with Deputy Prime Minister Choo at the IMF headquarters located in Washington DC, USA.

Georgieva stated, "Considering South Korea's solid fundamentals and high external credibility, there is no possibility of a crisis like in the past," adding, "in particular, South Korea has strong basic strength with low government debt, and through a fiscal tightening stance, it can also secure fiscal sustainability."

She also positively evaluated South Korea's sufficient foreign exchange reserves and favorable current account balance. However, she advised that selecting policy priorities suitable for South Korea's conditions is necessary to overcome the recent global complex crises, emphasizing that "it is important for both the government and the Bank of Korea to communicate closely with the market to secure policy credibility."

The two exchanged views on global economic threat factors such as inflation and war in major countries including the United States, and shared their perceptions of the South Korean economy. Deputy Prime Minister Choo emphasized to Georgieva that IMF's macro perspective and advice are very important at a time when high inflation and economic slowdown are concerning.

He also explained efforts surrounding South Korea's fiscal policy, risk management, and productivity enhancement. Deputy Prime Minister Choo stressed to Georgieva, "While pursuing sound fiscal discipline, we will also provide strong support to vulnerable groups through expenditure restructuring," adding, "We are also preparing measures to manage stable household debt growth rates, mitigate external volatility, and expand growth potential."

Deputy Prime Minister Choo requested Georgieva to take an interest in the recruitment and advancement of Koreans at the IMF, noting that many excellent South Korean talents wish to join the IMF. Georgieva responded to Deputy Prime Minister Choo by promising to pay close attention to Korean staff and mentioned that she will attend the digital currency conference to be held in South Korea next year.

Washington DC = Reporter Moon Je-won

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