South Korea, U.S. Hold First 2+2 Meeting at Bangkok

From left: Governor of the Bank of Korea Shin Hyun-song, Deputy Prime Minister Lee, Chair of the US Federal Reserve (Fed) Kevin Warsh, and Deputy Secretary of the US Department of the Treasury Francis Brooke met at at the Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand on Oct. 16 (local time). (Photo provided by the Ministry of Finance and Economy) The heads of the finance and monetary authorities of South Korea and the United States held a four-way meeting in a “2+2” format for the first time. The intent is to respond more effectively to external financial shocks by strengthening the coordination of fiscal and monetary policies between the two countries. According to the Ministry of Finance and Economy on Oct. 16, Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il and Governor of the Bank of Korea Shin Hyun-song held a four-way meeting between the South Korean and U.S. finance and monetary authorities with Chair of the U.S. Federal Reserve (Fed) Kevin Warsh and Deputy Secretary of the U.S. Department of the Treasury Francis Brooke in Bangkok, Thailand, on the afternoon of Oct. 16 (local time). In particular, this is the first time that a four-way meeting has been held with the simultaneous participation of the heads of the finance ministries and central banks of both countries. As the Fed, which is in charge of monetary policy, is an institution that determines policy independently from the government, it is evaluated as unusual for the U.S. Department of the Treasury and the Fed to jointly hold a meeting with the South Korean side. Deputy Prime Minister Lee also evaluated that this meeting is particularly meaningful in that it is the first time the finance ministries and central banks of both countries have met together in such a format. This meeting, arranged on the occasion of the International Monetary Fund (IMF) and World Bank (WB) Annual Meetings, was held for about 30 minutes from 1:00 p.m. to 1:30 p.m. Under Secretary for International Affairs of the U.S. Department of the Treasury Erin Brown was also present. The two countries shared the recent economic situation and discussed measures for economic and financial cooperation. An official from the Ministry of Finance and Economy explained, “This meeting is intended to strengthen the Policy Mix between the fiscal and monetary policies of the two countries,” adding, “It is meaningful in establishing a cooperation system that can respond more rapidly and effectively through close coordination between the fiscal and monetary authorities when a financial shock occurs from the outside.”