REPUBLIC OF KOREA
28 THE MAGAZINE
Korea’s Role in the G-20 Process
K
orea’s participation at the G-20 process seems to be relevant and useful. The reasons why South Korea has been able to contribute to the G-20 process may well be explained in the following way;First, the Republic of Korea has been a member of G-20 Troika together with the Great Britain and Brazil. In that capacity, she has kept active and close consultations with the Troika and G-20 member countries in the preparation of the Summits.
Second, in times of unprecedented financial and economic crisis, South Korea has valuable lessons to share with the world, as she already experienced a financial crisis in the late 1990s.
Third, among the G-20 member countries, South Korea is in a unique position; she can play a role of bridge between the industrialized countries and the developing countries.
Let me take the case of G-20 London Summit as an example.
In setting a balanced agenda
Since the Washington Summit in November 2008, South Korea
had underscored the importance of macroeconomic coordination and free trade agenda, and had strived to achieve a balance between the reforms of financial regulations and the macroeconomic coordination agenda.
In contributing to free trade and investment
During the Washington Summit, South Korea proposed a standstill on any new barriers to trade and investment. She went one step further during the London Summit to propose that nations roll-back all protectionist measures. The proposal was well reflected in the Leaders’ Statement released on 2 April 2009. South Korea also proposed that leaders reaffirm their commitment to a balanced conclusion of the DDA negotiations, building upon the progress of previous negotiations. This proposal was also well reflected in the Statement.
In setting the principles to deal with impaired assets
Based on experiences in managing impaired assets during 1997 financial crisis, South Korea made very useful suggestions. The suggestions, which
contributed to setting international principles to deal with impaired assets, was included in the G-20 Finance Ministers Communique.
On the issue of supplying
liquidity to emerging economies
South Korea had constantly supported the increase of resources of international financial institutions in order to provide more liquidity to the emerging economies. She has also actively participated in the global efforts to arrange sizable resources to facilitate trade finance.
On the issue of reforming financial regulations
South Korea proposed introducing an appropriate mechanism to monitor the implementation of these recommendations. The proposal was reflected in paragraph 16 of the Leaders’ Statement.
South Korea will continue to work together with other nations to deal with the current financial and economic crisis.
