"Developing countries' growth is limited by excessive debt"… Korea introduces 'performance-oriented fiscal policy'
"We must restore the functions of multilateral trade organizations, including the WTO, and work toward WTO adoption of the 'Investment Facilitation Agreement.'"
Emphasizes the need for multilateral development bank reform and supports the "Africa Cooperation Framework."
(Johannesburg = Yonhap News) Reporters Lim Hyeong-seop and Hwang Yun-gi = President Lee Jae-myung, who visited South Africa to attend the G20 summit, said on the 22nd (local time),"We must alleviate gaps and inequality and move toward a path where we can all live well together."
The president attended the first session of the summit held on this day under the theme of “Inclusive and Sustainable Growth that Leaves No One Behind,” and said, “If the imbalance worsens like this, we cannot guarantee our future.”
He continued,"I would like to propose three solutions to move towards a path of shared prosperity," and proposed efforts to ▲ alleviate the debt vulnerability of developing countries, ▲ restore the function of the multilateral trading system, and ▲ enhance the effectiveness of development cooperation.
First, the president diagnosed that"in the case of developing countries, the excessive debt burden is limiting their ability to invest in growth, weakening the momentum for sustainable growth."
He added,"We must transform our economic structure into a virtuous cycle that focuses resources on areas with high growth potential to create wealth and reduce debt ratios," and "We must not stop our efforts to strengthen the 'sustainability of debt.'"
The president also introduced,"South Korea is also pursuing a 'performance-oriented fiscal policy' that seeks to increase gross production and reduce the debt ratio in the long term by investing in future growth areas such as artificial intelligence (AI)."
Second, he suggested that international organizations should play their role in creating a predictable trade and investment environment.
In particular, he said that restoring the functions of the World Trade Organization (WTO) is in the interest of all, and promised that"South Korea will actively cooperate to ensure the success of the WTO Ministerial Conference to be held in Africa next year."
He added,"We will work to ensure that the 'Investment Facilitation Agreement,' which Korea has been leading, is adopted as an official agreement at the WTO Ministerial Conference next year."
Thirdly, he mentioned the importance of international cooperation to maximize the development effects of developing countries.
Specifically, he mentioned multilateral development banks, which support the development of developing countries in the region with the participation of multiple countries, and said,"Korea previously took the lead in adopting the 'Multilateral Development Bank Reform Roadmap Evaluation and Reporting System.' We will continue to participate in such reform efforts."
Meanwhile, President Lee said of this summit,"It is very meaningful that the G20 summit is being held for the first time in South Africa, the 'cradle of humanity.' South Korea will also actively cooperate to ensure the success of the summit."
He continued,"As a member of the G20, the Republic of Korea will fulfill its responsibilities and role. We will pursue inclusive growth where everyone enjoys opportunities and ensure that the number of countries left behind is minimized," and expressed his intention to actively support the activities of the "Framework for African Cooperation," a multinational policy unit formed with the goal of sustainable development in African countries.
