Seoul: Finance Minister Koo Yun-cheol has urged major economies to work together to bolster global supply chains and reinforce economic resilience amid the Middle East crisis, according to his office Friday. Koo made the call during the Group of 20 (G20) Finance Ministers and Central Bank Governors Meeting held in Washington on Thursday (U.S. time), as the conflict, which began late February following the U.S.-Israeli strikes on Iran, has disrupted global supply chains and unsettled financial markets.
According to Yonhap News Agency, Koo stated that the Middle East crisis has heightened uncertainty in the global economy and financial markets, potentially acting as another constraint on economic growth. He emphasized the importance of countries limiting spillover effects on the real economy through swift policy action and close international coordination. At the G20 level, he highlighted the necessity of exploring ways to secure global supply chains and support the recovery of the world economy.
Koo also addressed global imbalances, noting that South Korea will continue to play a mediating role between advanced and emerging economies. He warned that excessive and persistent imbalances among nations could pose another risk to the global economy and stressed that cooperation among G20 members and other partners is essential to effectively prevent and manage such risks.
In his remarks, Koo further emphasized the need to strengthen the foundations for future growth by expanding investment in artificial intelligence (AI) and pursuing regulatory innovation.