Finance minister stresses tackling disparities for sustainable growth at IMFC

By Kang Yoon-seung

BANGKOK, Oct. 18 (Yonhap) -- Finance Minister Lee Hyoung-il has stressed the need to address disparities to achieve sustainable growth during a meeting of the International Monetary and Financial Committee (IMFC), his office said Sunday.

Lee attended the meeting in Bangkok on Saturday as a committee member during the Annual Meetings of the International Monetary Fund and the World Bank Group, sharing his views on ways to address global economic challenges, according to the Ministry of Finance and Economy.

The South Korean official discussed ways to share outcomes of achievements made by artificial intelligence (AI), along with the IMF's policy directions.

During the gathering, the IMF noted the global economy is showing signs of recovery but continues to face heightened uncertainty and downside risks.

The IMF highlighted the need for countries to adopt policies to ensure macroeconomic and financial stability while pursuing structural reforms to support AI adoption and digital transformation.

The Washington-based organization called for international coordination to address global imbalances and debt problems in low-income countries.

Lee endorsed the IMF's recommendation to maintain fiscal soundness while enhancing the private sector's growth potential, noting South Korea is pursuing responsible fiscal policies while promoting growth.

The finance minister stressed addressing disparities plays a key role in achieving sustainable growth, noting South Korea is working to narrow gaps in three major areas -- housing, jobs and financial services -- to support vulnerable groups.

On the sidelines of the event, Lee met separately with IMF Managing Director Kristalina Georgieva and First Deputy Managing Director Dan Katz, briefing them on South Korea's policy efforts to pursue sustainable growth and address disparities.

In response, Georgieva noted the IMF had recently raised its growth forecast for South Korea and described the country's combination of mildly restrictive monetary policy and neutral fiscal policy as appropriate.

Last week, the IMF revised up South Korea's growth outlook for this year by 0.7 percentage point to 3.3 percent compared to its July projection.

She noted the Future Fund, set to launch next year using strong tax revenues from the chip industry, could serve as a buffer against future changes in economic conditions.

Lee and Georgieva signed a letter of intent (LOI) to pursue continued cooperation on the AI Hub initiative, which aims to use AI technologies to address the complex crises facing the international community, with the participation of international organizations and multilateral development banks.

Lee said the IMF's participation in the global AI hub would provide a platform for narrowing the global technology gap, noting South Korea intends to provide continued support to strengthen the digital capabilities of vulnerable countries.

colin@yna.co.kr
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