Koo Yun-cheol meets IMF first deputy managing director: "We will use all available tools to minimize economic impact"

[Financial News] Koo Yun-cheol, Deputy Prime Minister and Minister of Finance and Economy, met with Dan Katz, first deputy managing director of the International Monetary Fund (IMF), at Government Complex Seoul on the 19th. The two discussed a wide range of issues, including the impact of the recent situation in the Middle East on the global economy, South Korea’s policy response, and ways to strengthen cooperation between South Korea and the IMF.
Katz assessed that the recent developments in the Middle East have increased volatility in energy prices and financial markets, heightening downside risks to the global economy. He warned that if the situation is prolonged, it could negatively affect the global growth path and inflation, and noted that the IMF is closely monitoring related developments and plans to reflect them in the World Economic Outlook (WEO) to be released in April.
Koo noted that external uncertainty has risen sharply in recent weeks and explained that the government has activated a pan-government emergency response system to address the situation in the Middle East. He said authorities are closely monitoring energy supply and demand as well as trends across the financial and real sectors. Koo emphasized that the South Korean government will mobilize all available policy tools in fiscal, financial, and industrial areas, including a cap on petroleum product prices and swift formulation of an extra budget, to minimize the impact on the economy and people’s livelihoods.
Katz remarked that the South Korean economy has so far responded well to internal and external shocks. He highly valued the government’s swift policy actions in response to the recent increase in market volatility and its effects on the real economy.
Katz also expressed appreciation for South Korea’s active contributions to the IMF’s capacity-building programs for vulnerable and low-income countries, and called for even closer cooperation going forward. In response, Koo said South Korea will continue to expand its support for capacity-building initiatives across a wide range of areas, including AI and digital technologies.


syj@fnnews.com Seo Young-jun Reporter