finance minister-US visit
 |
| ▲ Finance Minister Choo Kyung-ho (L) holds a meeting with Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), in Washington on Oct. 13, 2022, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap) |
 |
| ▲ Finance Minister Choo Kyung-ho (L) holds a meeting with U.S. Treasury Secretary Janet Yellen in Washington on Oct. 13, 2022, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap) |
 |
| ▲ Finance Minister Choo Kyung-ho (R) holds a meeting with Saudi Finance Minister Mohammed Al-jadaan in Washington on Oct. 13, 2022, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap) |
finance minister-US visit
S. Korea maintains solid fundamentals, not likely to face crisis: IMF chief
By Kang Yoon-seung
WASHINGTON/SEOUL, Oct. 14 (Yonhap) -- South Korea is not likely to face a financial crisis as it maintains solid fundamentals, the head of the International Monetary Fund (IMF) said Thursday (U.S. time), amid looming fears over the fallout of the strong U.S. dollar.
Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), made the remark during her meeting with South Korean Finance Minister Choo Kyung-ho, who was visiting Washington to participate in the Group of 20 meeting of finance chiefs and central bankers.
Georgieva was quoted as saying by the finance ministry that South Korea maintains low government debt and holds sufficient foreign reserves, and its current account is in good shape.
The Korean won has slid roughly 16 percent against the greenback this year so far. A weak currency usually heightens inflation pressure as it makes imports more expensive.
Georgieva added it is important for the South Korean government and the central bank to communicate closely with the market for credible policies.
The IMF on Tuesday revised up its 2022 economic growth outlook for South Korea to 2.6 percent from the growth forecast of 2.3 percent in July. Still, the Washington-based lender cut next year's growth estimate for South Korea to 2 percent from the previous forecast of 2.1 percent.
On Thursday, Choo also met U.S. Treasury Secretary Janet Yellen and discussed pending economic issues, including the U.S. Inflation Reduction Act (IRA), according to the finance ministry.
During the talks, the two chiefs reaffirmed their agreement reached late last month, when the two countries vowed to collaborate to beef up liquidity facilities should financial market routs around the globe deepen.
Choo also asked Yellen to continue to pay attention to issues surrounding the IRA, which gives tax credits only to electric vehicles assembled in North America. South Korea has been expressing concerns it may act as a significant trade barrier for Korean carmakers.
On the same day, Choo also met Saudi Finance Minister Mohammed Al-jadaan, requesting the oil-rich nation cooperate for a stable supply of crude. Saudi Arabia is the largest supplier of oil for Asia's No. 4 economy.
Choo also asked his Saudi counterpart to support South Korean businesses wishing to participate in the Middle East nation's construction, nuclear plant and defense projects.
Al-jadaan replied that South Korea is an important investment partner for Saudi Arabia, and added that Riyadh will make efforts for a stable supply of crude and play its role in the international community.
(END)
(C) Yonhap News Agency. All Rights Reserved
