Deputy Prime Minister and Minister of Strategy and Finance Hyun Oh-seok will be attending the G20 Finance Ministers and Central Bank Governors’ Meeting in Moscow, Russia from July 19 to July 20. Deputy Prime Minister Hyun will also be attending the first ever G20 Finance and Labor Ministers’ Meeting with Minister of Employment and Labor Phang Ha-nam on July 19.

G20 Finance Ministers and Central Bank Governors’ Meeting

The meeting will examine global economic and financial market trends as well as risk factors, and will discuss avenues for G20-level policy cooperation. The results of the meeting will be expressed through the G20 Communique. With the September 5-6 G20 Leaders’ Summit in Saint Petersburg ahead, the G20 Finance Ministers’ Meeting will also check up on the progress of G20 tasks and their results.

The meeting will be composed of 7 sessions handling a broad range of issues, including monitoring global risk factors and macro-prudential policy cooperation, reforming international financial architecture, tax avoidance prevention, and financial regulation. Most importantly, the meeting will engage in a G20-level discussion regarding the issue of a safe exit from unconventional monetary policy. 
At the first session (Global Economy), Deputy Prime Minister Hyun plans to emphasize the importance of international cooperation in order to minimize negative spillover effects, such as global interest rate spikes and rapid capital outflows from other countries arising due to the US exit from unconventional monetary policy.

At the second session (International Financial Architecture Reform), Deputy Prime Minister Hyun will point out the need to examine global financial safety nets and their ability to operate in the event of a future crisis, as financial markets continue to grow more volatile due to talk of tapering quantitative easing in the US. Deputy Prime Minister Hyun will also emphasize the importance of IMF-Regional Financial Arrangements (RFA) and RFA cooperation in order to overcome future crises. Deputy Prime Minister Hyun will propose that G20 countries share their RFA experience, including experiences from the Chiang Mai Initiative Multilateralization and the European Stability Mechanism, and will talk about establishing an RFA forum as a real-time discussion channel in order to discuss RFA development methods. The Deputy Prime Minister will also request that the G20 study concrete ways to manage these RFA programs.

At the 4th session (Tax Avoidance Prevention), Korea will actively support discussions on international cooperation regarding preventing tax avoidance/evasion, an issue that had also been discussed by the OECD. The Deputy Prime Minister will use Korea’s policies to legalize the underground economy and prevent tax evasion as examples of ways to address these problems.

G20 Finance and Labor Ministers’ Meeting

The G20 Finance and Labor Ministers’ Meeting’s agenda is referenced below, and at the conclusion of the meeting, the Communiqu? will be announced.

Deputy Prime Minister Hyun plans to discuss Park Geun-hye Administration policies in the context of global challenges to promote employment, such as creating an innovative environment, resolving mismatches in the labor market, and constructing a cost-effective employment system.

Bilateral Meetings

Deputy Prime Minister Hyun plans to hold bilateral talks with finance ministers from the US, China, Germany, Australia and the Managing Director of the IMF, Christine Lagarde. The Deputy Prime Minister will exchange opinions regarding the current economic situation of major countries, such as the US, China and Germany, as well as global economic risk factors. The Deputy Prime Minister will also discuss cooperation methods in order to promote a stable economic recovery and therefore plans to strengthen economic and financial cooperation networks. The Deputy Prime Minister will also relay Korea’s positions regarding the need for international cooperation with regards to the exit from unconventional monetary policy, each country’s role at the G20 Leaders’ Summit, and finding ways to cooperate with regards to financing the Green Climate Fund (GCF). During his meeting with IMF Managing Director Lagarde, Deputy Prime Minister Hyun plans to request that IMF take an active role in monitoring downside risks in the global economy, pushing for IMF quota reform and analyzing spillover effects related to quantitative easing exit strategies.    

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