Major Countries and Developing Nations Must Unite to Address Global Imbalances

To address global imbalances, there is a growing call to enhance the roles of international organizations responsible for analysis and monitoring. The South Korean government proposed at the G20 Deputy Finance Ministers' meeting that both major and developing countries must work together to mitigate negative spillover effects.

According to the Ministry of Economy and Finance, the third G20 Deputy Finance Ministers and Central Bank Deputy Governors meeting took place from May 14 to 15 in Florida, USA. Moon Ji-sung, the ministry's Director of International Economic Affairs, served as the chief representative, presenting South Korea's policies and positions on key issues.

The G20 Deputy Finance Ministers' meeting is an event where finance officials from the G20 member countries gather to discuss global financial agendas.

To tackle the deepening global imbalances, participating countries agreed on the need for orderly policy formulation. They reaffirmed the importance of organizations such as the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) in enhancing analysis and monitoring of imbalances.

Currently, the Ministry of Economy and Finance co-chairs the G20 Global Imbalances Study Group with Australia. Director Moon emphasized that addressing the imbalance issue requires simultaneous efforts from surplus and deficit countries, including major economies like the United States, China, and the European Union, as well as developing nations, to minimize negative spillover effects.

Discussions also covered the economic impacts of the Middle East conflict, national policy responses, and cooperation among vulnerable countries. The ministry highlighted South Korea's emergency economic response and suggested that practical solutions be developed at the G20 level to stabilize supply chains and enhance economic resilience.

In the financial sector session, the ministry introduced policies aimed at improving financial regulations for productive finance and monitoring cross-border transactions of virtual assets through amendments to foreign exchange laws. Member countries showed interest in South Korea's tailored economic and financial education programs for different life stages.

To promote economic growth, member countries shared examples of policies they are implementing, including regulatory reforms and the creation of innovation ecosystems. There was a consensus on South Korea's government-wide efforts for regulatory innovation and the rationalization of regulations in emerging industries such as artificial intelligence (AI) and autonomous driving.



* This article has been translated by AI.

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