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 highlighted that the Middle East crisis has increased uncertainty in the global economy and financial markets, potentially acting as another constraint on economic growth. He emphasized the importance of limiting spillover effects on the real economy through swift policy action and close international coordination. At the G20 level, exploring ways to secure global supply chains and support the recovery of the world economy is deemed necessary.
Koo pointed out that addressing global imbalances is crucial, and South Korea will continue to play a mediating role between advanced and emerging economies. He expressed concerns over excessive and persistent imbalances among nations, noting that such conditions could pose risks to the global economy. Cooperation among G20 members and other partners is essential to effectively prevent and manage these risks.
Koo also stressed the need to strengthen foundations for future growth by expanding investment in artificial intelligence (AI) and pursuing regulatory innovation. On the sidelines of the gathering, Koo held separate talks with his counterparts and economic delegates from France, Australia, and Uzbekistan.
Roland Lescure, France's minister delegate for industry, invited Koo to the upcoming Group of Seven (G7) Finance Ministers' Meeting in Paris next month and called on Seoul to play an active role in addressing economic uncertainties stemming from the Middle East conflict, the ministry said.
During his meetings with Australia's Treasurer Jim Chalmers and Uzbek Deputy Prime Minister Jamshid Khodjaev, Koo highlighted that these countries are key partners for South Korea in supply chains, particularly for critical minerals, and proposed further expanding strategic partnerships.
Koo also met with Harvey Schwartz, CEO of Carlyle, one of the world's largest asset managers, and requested continued interest and active investment in South Korea. The minister held separate meetings with World Bank President Ajay Banga, President of the Asian Infrastructure Investment Bank Zou Jiayi, and President of the Inter-American Development Bank Ilan Goldfajn to discuss ways of enhancing cooperation.
Koo is scheduled to meet with U.S. Treasury Secretary Scott Bessent and IMF Managing Director Kristalina Georgieva on Friday (U.S. time), according to the ministry.