One great leap for Korea: the G-20 Seoul Summit
2010/04/22 Leave a comment
The G-20 is the premier forum for our international economic cooperation that promotes open and constructive discussion between industrial and emerging-market countries on key issues related to global economic stability. By contributing to the strengthening of the international financial system and providing opportunities for dialogue on national policies, international cooperation, and international financial institutions, the G-20 helps to support growth and development across the globe.
Korea is the first country which holds the G-20 Summit among Asian countries. It’s attributed in part to the fact that Korea has successfully overcome the latest crisis. At ‘the G-20 Seoul Summit’ held in November 2010, a statement about ‘Sustainable and balanced growth’ is to be issued. Specific plans on reforming IMF and establishing financial safety nets will be also discussed. As a chair of the G-20 this year, Korea needs to seize the chance to internationally enhance its position and demonstrate its leadership to other countries.
What does Korea want to achieve through the 2010 G-20 Summit ?
The Korean economy used to be undervalued in the global market due to the so-called ‘Korea discount’ effect. Now, as a chairing country of the G-20, Korea plans to raise its profile on the global stage and turn the ‘Korea discount’ effect into ‘Korea premium’ one. To support this goal, the Financial Services Commission (FSC) has five action plans.
1. Supporting successful hosting of the G-20 Summit
As a chair and host of the 2010 G-20 summit, Korea’s role will play an important role in bridging the gap between the advanced and emerging economies. To this end, Korea is more actively participating in global discussions on various issues and taking a leading role in international bodies such as the Financial Stability Board (FSB). The FSC also supports the ‘Presidential Committee for the G-20 Summit’ to select items for agenda and resolve differences among the countries. Especially, the FSC is making effort to build constant channels of communication among the financial authorities in Asian countries to gather opinions about financial agenda.
2. Fostering distinctive financial center
The FSC has plan to create specialized financial centers in Yeouido, Seoul and Moonhyun, Pusan. Under this plan, the FSC formed consultative groups with local governments and is working on detailed plans for implementation. It is also in the process of improving business environment to attract more foreign financial institutions. As part of this effort, the FSC and the FSS are issuing Financial Investor Express Cards for foreign financial investors who meet certain requirements to make their immigration process much more convenient. The FSC is also working on nurturing and attracting financial experts.
3. Pushing ahead a globalization of Korea’s finance system
Efforts to globalize Korea’s financial system are being made in two ways: exporting finance systems and attracting foreign companies. Exporting Korea’s financial infrastructure to developing countries can improve efficiency, accuracy, and transparency in financial transactions. Korea’s advanced IT technology can contribute a lot to establishing financial infrastructure in developing countries. The FSC is also supporting domestic financial institutions to go abroad and expand their business activities so that Korea can have more influence in the global financial market.
4. Improving transparency in finance
Transparency is an important factor to determine the development of a country’s financial system. Korea’s financial authority reformed the systems related to Anti-Money Laundering Laws and System to improve it. Moreover, To increase its international role in anti-money laundering area, as a full member of Financial Action Task Force (FATF) and chair country of the G-20 Summit, the FSC is building a bridge between these two organizations to strengthen its position in the world. It also extends technical support for developing countries. In this regard, according to the request of Asia-Pacific Group on Money Laundering (APG), the FSC decided to help the Mongolia government improve its Anti-Money Laundering System.
5. Enhancing the financial supervisory services
Equipped with a well-developed system, the FSC is working on improving its financial supervisory practices. To this end, the FSC invited external experts to create an advisory committee and to make an unbiased and objective assessment about its supervisory activities. It also strives to build a cooperation system among individual sectors to provide a more consistent and comprehensive supervisory approach.
With all these efforts, Korea will take initiative in global coordination. Korea will make effort to calibrate the interests of G-20 countries in a well-balanced manner. Diplomatic leadership also needs to be shown to engage non-G20 countries into discussion. For Korea, ‘the G-20 Seoul Summit’ is a valuable chance to show the global community its leadership. Let’s hope its efforts will be crowned with success.