Choo stresses 'policy connectivity' in Asia to address economic uncertainties

▲ Finance Minister Choo Kyung-ho speaks during the opening session of Korea Seminar Day at the Songdo Convensia convention center in Incheon, west of Seoul, on May 2, 2023. (Yonhap)

ADB-policy connectivity

Choo stresses 'policy connectivity' in Asia to address economic uncertainties

By Kang Yoon-seung

INCHEON, May 2 (Yonhap) -- South Korea's finance minister on Tuesday highlighted the importance of "policy connectivity" among Asian nations to cope with economic uncertainties and the fragmentation of supply chains.

Finance Minister Choo Kyung-ho made the remarks during Korea Seminar Day on the sidelines of the 56th Annual Meeting of the Board of Governors of the Asian Development Bank in Incheon, 36 kilometers west of Seoul.

"Asia is a global manufacturing and trade hub. So, it is highly vulnerable to global economic fragmentation," Choo said. "Thus, we should take the lead to curb the spread of protectionism and increase global trade."

In order to cope with such challenges, the finance minister pointed out Asian countries need to strengthen what he calls "policy connectivity."

Due to high inflation and recent banking instability, global uncertainty is now growing in both financial markets and real economies," he said. "Thus, we should strengthen our supervision of vulnerable sectors through close communication and enhance regional financial cooperation, such as improving the effectiveness of the regional financial safety net."

"Korea will actively contribute to regional economic development and integration by sharing our policy achievements and development experiences," Choo said, noting Asia's No. 4 economy will expand its official development assistance (ODA) volume to the level of the world's top 10 donors.

The government data showed earlier South Korea's annual ODA contributions came to US$2.79 billion in 2022, down 3 percent from a year earlier. The country ranked at 16th place among 30 countries under the Development Assistance Committee of the Organization for Economic Cooperation and Development, a group of 38 mostly rich and advanced nations.

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