Deputy Prime Minister Lee Hyeongil Meets IMF Chief... Georgieva Praises South Korea's Monetary-Fiscal "Policy Mix"

Holds Series of Meetings with IMF Managing Director and First Deputy Managing Director
Signs Letter of Intent on Global AI Hub

Lee Hyeongil, Deputy Prime Minister and Minister of Economy and Finance, attended the International Monetary and Financial Committee (IMFC) meeting in Bangkok, Thailand, on October 17 (local time). He met with International Monetary Fund (IMF) Managing Director Kristalina Georgieva to discuss ways to strengthen economic cooperation between the two sides. Georgieva said the IMF had substantially upgraded its growth forecast for South Korea and highly praised the Korean government's ability to manage the macroeconomy.

Georgieva Praises South Korea's "Policy Mix" and Upgrades Growth Forecast

Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il, who is visiting Bangkok, Thailand, to attend the annual meetings of the International Monetary Fund (IMF) and World Bank (WB), the G20 finance ministers and central bank governors meeting, and the G7 finance ministers and central bank governors meeting, greets IMF Managing Director Kristalina Georgieva with a handshake after signing a letter of intent to continue the Global AI Hub and capacity development partnership at the Queen Sirikit National Convention Center (QSNCC) on October 17 (local time). Ministry of Finance and Economy.

Georgieva said South Korea's approach of maintaining a mildly contractionary monetary policy while steering fiscal policy in a neutral direction was highly appropriate. She explained that this macroeconomic management does not burden monetary policy and also allows the government to set aside surplus resources in the Future Response Fund, creating a robust buffer against future changes in economic conditions. Both sides agreed to continue more detailed discussions on the matter at their annual consultation in November. In a series of meetings with Georgieva and First Deputy Managing Director Dan Katz, Deputy Prime Minister Lee highlighted South Korea's efforts to ease polarization through three key social policies, as well as its three mega-projects and seven SEED projects, among other policy initiatives to lay the foundations for sustainable growth.

Deputy Prime Minister Lee also attended the committee as a representative of an IMF member country and shared policy directions with key figures in the global economy. The IMF said the global economy was showing signs of recovery but continued to face high uncertainty and downside risks. It stressed the importance of policy responses to ensure macroeconomic and financial stability in each country, as well as structural reforms to support the digital transition. Lee said he strongly agreed with the IMF's recommendation to maintain fiscal soundness while expanding the private sector's growth potential, and explained that South Korea was also pursuing responsible fiscal management alongside structural reforms to promote growth. He further stressed that easing polarization is essential to sustainable growth and reiterated that the Korean government is pressing ahead with three key social policies covering housing, jobs, and financial services for ordinary citizens.

Leading Efforts to Bridge the Global Technology Divide... South Korea and IMF Sign Letter of Intent on Global AI Hub

The meeting also produced a concrete diplomatic achievement aimed at making artificial intelligence (AI) innovation a driver of global economic growth. Deputy Prime Minister Lee and Georgieva officially signed a letter of intent (LOI) on cooperation to continue the partnership on South Korea's participation in the IMF Global AI Hub and capacity development. Lee expressed his hope that the IMF's participation in the Global AI Hub would serve as a practical bridge to help close the technology divide worldwide.

He also affirmed the Korean government's firm commitment to continuing its support for digital capacity development in vulnerable countries, adding that he hoped the signing of the agreement would serve as a milestone symbolizing close cooperation between South Korea and the IMF toward sustainable global economic growth. In his address to the committee earlier, Lee also noted that sophisticated policymaking and international cooperation are essential to ensure that the benefits of AI are shared around the world. He called on the IMF to provide practical policy recommendations for responding to financial and cyber threats and strengthening financial resilience.

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