| Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki attends a meeting of the Central Disaster and Safety Countermeasures Headquarters in Seoul, Friday. He is currently visiting the United States in the last overseas business trip of his term. Yonhap |
Finance minister also plans to visit Singapore to discuss CPTPP
By Yi Whan-woo
Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki will address Korea's efforts to reach global climate change goals and deal with the impact of the Ukraine crisis on his last overseas visit as the top economic policymaker of the world's 10th-largest economy.
Hong is traveling to the U.S. and later will fly to Singapore in a trip that on began Sunday, with less than a month remaining before the incoming Yoon Suk-yeol administration takes power.
In addition to global issues, the finance minister will meet relevant representatives and address Korea's efforts toward financial soundness in relation to S&P's sovereign ratings, an investor-friendly financial market in relation to the Morgan Stanley Capital International (MSCI) index and dialogue in relation to becoming a new member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
In Washington, D.C., Tuesday, Hong will attend the meeting of the Coalition of Finance Ministers for Climate Action inspired by the 2018 Annual Meetings of the World Bank and the International Monetary Fund (IMF). This meeting will be the first on his U.S. trip, which will last a week.
The coalition focuses on the role financial ministries have in mobilizing government finances to drive stronger collective action on climate change as the top economic policymakers of their respective countries. The coalition seeks to stimulate new opportunities for climate action ― potentially an estimated $26 trillion in investments and the creation of 65 million jobs around the world by 2030.
Korea is among the coalition's 71 member countries. According to the Ministry of Economy and Finance, Hong plans to introduce Korea's carbon emission trading market, policies related to the pricing of such emissions and projects to support developing countries in catching up amid the global transition to a green economy.
On Wednesday, he will join a meeting of finance ministers and central bank governors from the G20 nations. The topics to be covered include possible measures to counter inflation and other global economic risks related to Russia's invasion of Ukraine.
The meeting will be joined by representatives from global financial institutions, including the World Bank, IMF and OECD. The finance minister of Ukraine is expected to be present at the gathering on special invitation.
“Minister Hong will discuss Korea's stance concerning these issues,” the finance ministry said.
On Thursday, the minister will join a meeting of the International Monetary and Financial Committee. Governed by the IMF, the committee meets twice a year and is a key instrument for providing strategic direction for the work and policies of the IMF, although it has no formal decision-making powers.
Also on Thursday, Hong will have one-on-one meetings with IMF Director Kristalina Georgieva, U.S. Secretary of Treasury Janet Yellen and S&P Global President and CEO Douglas Peterson.
The meeting with Peterson will take place as S&P, one of the three global ratings agencies, is scheduled to update its country credit ratings this month. Taking this situation into account, Hong will likely talk about Korea's economy and financial soundness in the pandemic era. S&P has kept Korea's long-term sovereign credit rating since August 2016 at “AA," the third-highest level on the company's rating list.
On Friday, Hong will meet MSCI Chairman and CEO Henry Fernandez, and reaffirm Korea's commitment to win “developed market” status. As an investment research firm headquartered in New York City, MSCI is internationally known for its benchmark indices that measure countries' stock market performances. MSCI announces the outcome of its review of a country's market status in every June. Korea has been on the “emerging market” index since 2009. Winning “developed market” status from the MSCI is expected to result in more foreign investment.
Hong will wrap up his U.S. schedule and then fly to Singapore, April 25. He will meet Singaporean Trade and Industry Minister Gam Kim Yong and other relevant officials to discuss the CPTPP.
The city state is currently the rotating chair of CPTPP, a mega-sized multilateral trade bloc renamed from the U.S.-led TPP, after was TPP was thrown into limbo during the Donald Trump administration.
Launched in 2018, the trade bloc consist of 11 countries ― Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam ― that collectively account for about 13 percent of the world's GDP and 15 percent of its trade volume. The CPTPP members altogether account for more than one-fifth of Korea's exports, and as a result, Korea has been pursuing joining the pact.