Korea–Japan Finance Ministers' Meeting Held, Shared Need for Cooperation to Ensure Stable Energy Supply

According to The Financial News, Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol held the 10th Korea–Japan Finance Ministers' Meeting with Finance Minister Satsuki Katayama on the 14th at the Ministry of Finance (Japan). The two sides exchanged views on global and regional economic conditions and discussed ways to strengthen bilateral and multilateral cooperation.
This Korea–Japan Finance Ministers' Meeting was the first to be held since new administrations took office in both countries. The ministers held candid discussions on the challenges facing the two economies and their policy responses, and sought future-oriented cooperation in the economic and financial fields. The meeting was conducted in two sessions.
In the first session, the two sides shared assessments of domestic and external economic conditions and the key policies of their new governments. The ministers agreed that the global economy is maintaining solid growth, but that various risks, including geopolitical tensions, persist. In particular, they held in-depth discussions on the recent situation in the Middle East and volatility in financial markets, and concurred that close cooperation is needed to ensure a stable energy supply. They also exchanged views on the potential to boost investment in areas such as artificial intelligence to support economic growth.
They further expressed serious concern over the recent sharp depreciation of both countries’ currencies. The ministers reaffirmed that they will closely monitor foreign exchange markets and continue to take appropriate measures against excessive volatility and disorderly movements in exchange rates.
The second session focused on strengthening coordination and joint responses between the Korean and Japanese finance authorities across various areas. On economic security, the two sides agreed to promote diversification of supply chains for critical minerals and to maintain close cooperation on supply chain policy. Regarding the ASEAN Plus Three (ASEAN+3) framework, to which both countries belong, they voiced support for efforts to enhance the effectiveness of the regional financial safety net, the Chiang Mai Initiative Multilateralisation (CMIM).
They also agreed to work closely together on a wide range of global issues in multilateral forums such as the Group of Twenty (G20) and the Group of Seven (G7). In addition, they decided to further strengthen cooperation between the two countries’ customs authorities, with a focus on the Korea–Japan Customs Heads Meeting scheduled to be held in Korea this April.
The ministers welcomed Korea’s plan to have its government bonds included in the World Government Bond Index (WGBI) and the Korean government’s efforts to engage with international investors. They highly valued Korea’s initiatives to improve the fundamentals of its foreign exchange and capital markets and to build a more advanced investment environment, which will make it easier for Japanese institutional investors to invest.
They went on to reaffirm the importance of bilateral financial cooperation, including the Japan–South Korea bilateral currency swap agreement, as well as the role of regional financial safety nets. The two sides agreed to continue discussions on additional improvements going forward.
To sustain their close partnership, the two countries also agreed to keep expanding the scope of cooperation. They will promote communication between the finance authorities at various levels through regular vice-ministerial meetings and staff exchange programs, and will continue research collaboration among policy research institutes.
Both sides agreed that the Finance Ministers' Meeting, which began in 2006 and now marks its 20th year, has been a useful channel for sharing experiences and deepening mutual understanding. They also agreed that the 11th Korea–Japan Finance Ministers' Meeting will be held in Korea within one year.

syj@fnnews.com Seo Young-jun Reporter