Deputy Prime Minister Lee Hyungil Holds 11 Rounds of Economic Diplomacy in Bangkok with Moody's and Others

Agreed with EBRD and CABEI to establish AI cooperation hubs

Global rating agencies reaffirmed Korea’s sovereign credit rating with a stable outlook. Their assessment was that the boom in semiconductors and artificial intelligence (AI) is offsetting concerns about slowing growth, despite domestic and external headwinds such as an aging population and the war in the Middle East.

Lee Hyung-il, Deputy Prime Minister and Minister of Finance and Economy, shakes hands with Mari Daron, head of credit ratings at international credit rating agency Moody's, before their meeting at the Queen Sirikit National Convention Center (QSNCC) on October 16 (local time). Lee is visiting Bangkok, Thailand, to attend the IMF-World Bank Annual Meetings, the G20 Finance Ministers and Central Bank Governors Meeting, and the G7 Finance Ministers and Central Bank Governors Meeting. Ministry of Finance and Economy.

On October 16 (local time), Deputy Prime Minister and Minister of Finance and Economy Lee Hyungil held 11 consecutive meetings in Bangkok, Thailand, with senior officials from the three major credit rating agencies—Moody’s, Fitch and S&P Global Ratings—as well as the heads of multilateral development banks, and actively outlined the fundamentals of the Korean economy. Lee forecast that Korea’s economy would grow by 3% or more this year, buoyed by a boom in semiconductor exports. He also said the government was pursuing three mega projects to secure future growth drivers. The rating agencies showed keen interest in the Korean government’s plans to build up fiscal buffers, including through the Future Response Fund. Lee replied that the government was using excess tax revenue to reduce the volume of government bond issuance and manage the bond market stably. He also emphasized that the government was working to ease polarization through key social policies on housing and employment.

The meetings with multilateral development banks yielded a concrete result: the establishment of hubs for AI cooperation. Lee met separately with the presidents of the European Bank for Reconstruction and Development and the Central American Bank for Economic Integration, and signed memorandums of understanding with each. The aim is to use Korea’s technological expertise to help developing countries with their AI transitions. Odile Renaud-Basso, president of the European Bank for Reconstruction and Development, described Korea as a leader in AI and expressed hope for expanded cooperation in nuclear energy, including small modular reactors. Gisela Sánchez, president of the Central American Bank for Economic Integration, also said she hoped the agreement would lead to more Korean companies entering Central America.

Bilateral meetings with major countries broadened the scope of economic cooperation. Lee met with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan and introduced the government’s plan to establish a “strategic sovereign wealth fund.” He also requested that Saudi Arabia share its sovereign wealth fund expertise and cooperate on the initiative. Lee agreed with U.S. Deputy Treasury Secretary Francis Brooke to maintain close communication between the two countries’ finance authorities. He discussed mutually beneficial cooperation in advanced innovation with Swiss President Guy Parmelin and expanded solidarity in the defense industry with Polish Finance Minister Andrzej Domański. Meanwhile, at a meeting with Euroclear Group CEO Valerie Urbain, Lee expressed his appreciation for the support for Korea’s inclusion in the World Government Bond Index and agreed to cooperate on boosting won-denominated transactions.

This content was produced with the assistance of AI translation services.