▲ Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il (right) poses for a commemorative photo after meeting with IMF Managing Director Kristalina Georgieva and signing a letter of intent to continue the Global AI Hub and Capacity Development Partnership at the Queen Sirikit National Convention Centre (QSNCC) on the 17th (local time).
The International Monetary Fund (IMF) has evaluated South Korea's fiscal and monetary policy mix, including the establishment of the Future Readiness Fund, as appropriate.
The Ministry of Economy and Finance announced that IMF Managing Director Kristalina Georgieva made the remarks during a meeting with Deputy Prime Minister and Minister of Economy and Finance Lee Hyung-il, held on the 17th (local time) in Bangkok, Thailand, on the sidelines of the International Monetary and Financial Committee (IMFC) meeting.
During his meetings with both IMF Managing Director Georgieva and First Deputy Managing Director Dan Katz, Deputy Prime Minister Lee emphasized the South Korean government's efforts to lay the foundation for sustainable growth, driven by polarization-easing efforts based on three core social policies, three mega projects, and seven SEED projects.
In the meeting, Managing Director Georgieva noted that the IMF significantly upgraded South Korea's economic growth forecast and assessed that "South Korea's policy mix approach of maintaining moderately tight monetary policy while keeping fiscal policy neutral is appropriate."
She added, "By accumulating surplus resources in the Future Readiness Fund without imposing burdens on monetary policy, it is possible to build a buffer against future economic fluctuations," and noted that "more detailed discussions can take place during the annual consultations in November."
Deputy Prime Minister Lee and Managing Director Georgieva also signed a Letter of Intent (LOI) regarding the IMF's participation in the Korea-IMF Global AI Hub and the continuation of the capacity development partnership.
Lee stated, "The IMF's participation in the Global AI Hub will serve as a practical bridgehead to resolve the global technology gap," expressing South Korea's commitment to continuously supporting digital capacity building in vulnerable countries.
He added, "I hope the signing of this LOI will serve as a milestone for close cooperation between South Korea and the IMF for sustainable global economic growth."
Meanwhile, attending the IMFC in his capacity as a representative of an IMF executive board member country, Deputy Prime Minister Lee exchanged views with finance ministers and central bank governors of major nations regarding the need to alleviate polarization for sustainable growth, inclusive AI-driven growth, and the IMF's policy directions.
At the committee meeting, the IMF diagnosed that "the global economy is showing signs of recovery, but still faces high uncertainty and downside risks."
It urged that "policy responses by countries for macroeconomic and financial stability, as well as structural reforms supporting AI and digital transition, are important," and called for "strengthening international cooperation to resolve global imbalances and address low-income country debt issues."
Deputy Prime Minister Lee shared the same view with the IMF's recommendation that private sector growth potential should be expanded while maintaining fiscal soundness.
Lee emphasized, "South Korea is also pursuing structural reforms to promote growth alongside responsible fiscal management," while mentioning the need to alleviate polarization for sustainable growth and noting that South Korea is implementing three core social policies concerning housing, jobs, and livelihood finance.
In addition, he suggested that "sophisticated policy design and international cooperation are necessary to ensure the benefits of AI are distributed worldwide," and that "responses to financial and cyber threats must be reinforced alongside financial resilience."
He also requested that "practical policy recommendations from the IMF regarding economic polarization and the AI transition are needed."
(Photo: Provided by the Ministry of Economy and Finance, Yonhap News)
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