On May 3, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired the 26th Trilateral Finance Ministers’ and Central Bank Governors’ Meeting held in Samarkand, Uzbekistan.
The trilateral meeting is an annual consultative mechanism in which the finance ministers and central bank governors of Korea, China, and Japan discuss ways to strengthen economic and financial cooperation and review key agenda items ahead of the ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting. The presidency rotates annually among the three countries, with Korea serving as chair and presiding over this year’s meeting.
First, the three countries exchanged views on the macroeconomic impact of the recent conflict in the Middle East and the policy responses being pursued by each country. Despite heightened external uncertainties last year, the economies of the three countries remained resilient, and this trend continued through the first quarter of this year. However, participants shared the view that the recent conflict in the Middle East has further increased uncertainty and downside risks.
DPM Koo noted that, in addition to the immediate uncertainty arising from the conflict in the Middle East, Korea, China, and Japan share a range of medium- to long-term structural challenges, including low birth rates and population aging, weakening growth potential, and supply chain stabilization. He suggested that the three countries continue to share information and jointly explore solutions in pursuit of sustainable growth and shared prosperity.
Furthermore, with regard to ASEAN+3 financial cooperation, DPM Koo emphasized the need for the three countries to work together to enhance the effectiveness of the regional financial safety net, the Chiang Mai Initiative Multilateralisation (CMIM), and to strengthen the capacity of the ASEAN+3 Macroeconomic Research Office (AMRO) in response to growing uncertainty.
* Chiang Mai Initiative Multilateralisation (CMIM): a multilateral currency swap arrangement among ASEAN+3 members designed to provide liquidity support during crises, with a total size of USD 240 billion. Korea’s contribution amounts to USD 38.4 billion (16% share).
The finance ministers and central bank governors of the three countries shared the view that close communication and solidarity among them can contribute to regional financial stability amid rising external uncertainties. They also agreed to hold the next meeting in Nagoya, Japan, alongside the 30th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting next year.
Please refer to the attached files.
