Lee Hyung-il, South Korea's Deputy Prime Minister and Minister of Finance, emphasized the importance of reducing inequality and spreading the benefits of artificial intelligence (AI) for sustainable growth during a meeting with the International Monetary Fund (IMF). He urged for practical policy recommendations and signed a letter of intent to collaborate on a global AI hub and capacity development for vulnerable countries.
On October 17, local time, Lee attended the International Monetary and Financial Committee (IMFC) in Bangkok, Thailand, as a representative of the IMF member countries. He held discussions with IMF Managing Director Kristalina Georgieva and First Deputy Managing Director Dan Katz. The IMFC serves as an advisory body to the IMF's plenary, consisting of representatives from 25 member countries and meeting annually in April and October.
During the meeting, the IMF noted signs of recovery in the global economy but warned that significant uncertainties and downside risks remain. It called for structural reforms to support macroeconomic and financial stability, as well as AI and digital transformation, urging international cooperation to address global imbalances and the debt issues of low-income countries.
Lee expressed agreement with the IMF's recommendation to maintain fiscal soundness while enhancing private sector growth potential. He explained that South Korea is pursuing responsible fiscal management and structural reforms to promote growth. He also highlighted the need to reduce inequality for sustainable growth, emphasizing housing, job creation, and financial support for low-income households as the three core social policies.
He pointed out that sophisticated policy design and international cooperation are essential for the global dissemination of AI-driven growth. Lee stressed the need to respond to financial and cyber threats and enhance financial resilience, requesting the IMF's practical policy recommendations regarding economic inequality and AI transformation.
In his meeting with Georgieva, they discussed South Korea's economic policy direction and growth outlook. Georgieva noted that the IMF has significantly raised its growth forecast for South Korea, stating that the country's policy mix of gradually tightening monetary policy and maintaining neutral fiscal policy is appropriate. She also viewed positively the accumulation of surplus funds in the Future Response Fund to prepare for future economic conditions. Both parties agreed to continue more detailed discussions during the annual consultations in November.
Lee explained that South Korea is working to reduce inequality and establish a foundation for sustainable growth through its three core social policies, three mega projects, and seven SEED projects.
Additionally, a letter of intent was signed to continue cooperation for participation in the Korea-IMF global AI hub and capacity development partnership for vulnerable countries. The global AI hub serves as an open platform for international organizations and multilateral development banks to share AI capabilities, infrastructure, and expertise to seek solutions for complex global crises.
Lee stated, "The IMF's participation in the global AI hub will serve as a practical bridge to reduce the technological gap between countries, and I hope this letter of intent will mark a milestone in the close cooperation between South Korea and the IMF for sustainable global economic growth."
* This article has been translated by AI.
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