Deputy Prime Minister Lee Attends 2026 IMF/WBG Annual Meetings

DPM Lee Hyoung-il signs an LOI to continue the Global AI Hub and Capacity Development Partnership with Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva at the Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, on Oct. 17. (Photos: MOFE)

Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung-il participated in the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG), which took place in Bangkok, Thailand, from Oct. 12 through Oct. 18.

Deputy Prime Minister Lee headed a Korean delegation to the meetings, which included the governor of the Bank of Korea and heads and representatives of commercial banks, including Shinhan Financial Group, KB Kookmin Financial Group, Hana Financial Group, NH Financial Group, Woori Bank, Korea Development Bank, IBK, and Korea Eximbank.

Representatives of other financial institutions and the financial industry also attended, including the Korea Financial Investment Association.

The annual meetings of the IMF and the WBG bring together central bankers, ministers of finance and development, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.

Deputy Prime Minister Lee also attended the G20 Finance Ministers and Central Bank Governors Meeting and the G7 Finance Ministers and Central Bank Governors Meeting, which coincided with the IMF/WBG Annual meetings in Bangkok on Oct. 15.

These were the final in-person finance ministers’ meetings of the year hosted by the U.S. and France, the respective G20 and G7 presidencies for 2026.

Alongside finance ministers from major economies, Deputy Prime Minister Lee reviewed the outcomes of discussions over the past year and shared views on future policies.

DPM Lee Hyoung-il shakes hands with Asian Development Bank (ADB) President Kanda Masato prior to their meeting at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on Oct. 15.

Outcomes of the G20 Finance Ministers and Central Bank Governors Meeting

Deputy Prime Minister Lee identified several key challenges facing the global economy, including supply chain disruption stemming from geopolitical tensions such as the conflict in the Middle East, the need to address high inflation and elevated interest rates, and the importance of identifying new growth engines amid technological advances, including artificial intelligence.

Against this backdrop, he called on G20 members to strengthen supply chain resilience, protect vulnerable populations, and actively invest in future growth drives such as AI.

Meanwhile, G20 members took stock of this year’s discussions under the G20 Finance Track, noting that they had focused on key issues including economic growth, global imbalances and debt challenges, financial stability, regulatory reforms, and financial literacy enhancement.

Deputy Prime Minister Lee expressed appreciation to the U.S. for its efforts during its G20 presidency and stated that Korea would strive to contribute to stable global economic growth as part of the G20 Troika alongside the U.S. and the U.K. next year.

DPM Lee Hyoung-il holds a meeting with President Odile Renaud-Basso of the European Bank for Reconstruction and Development (EBRD) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on Oct. 16.

Outcomes of the G7 Finance Ministers and Central Bank Governors Meeting

Later that evening, on Oct. 15, Deputy Prime Minister Lee participated in the G7 Finance Ministers and Central Bank Governors Meeting as an invited guest.

For the first time, Korea was invited to participate in two consecutive G7 Finance Ministers’ Meetings, in May and October of the same year.

Deputy Prime Minister Lee joined finance ministers and central bank governors from major advanced economies in discussing key issues, including the global economy and global imbalances.

Deputy Prime Minister Lee sincerely thanked France for its leadership and achievements during its G7 presidency this year.

He also underscored the need for broad-based efforts, including macroeconomic policy measures and structural reforms, to reduce global imbalances.

Addressing major global economic challenges, such as global imbalances, requires not only cooperation within the G7 but also inclusive cooperation through G20 governance, he emphasized.

On the sidelines of the G20 Finance Ministers and Central Bank Governors meeting, Deputy Prime Minister and Minister of Finance and Economy Lee held introductory bilateral meetings with finance ministers from major economies, including Japan, the United Kingdom, Australia, Germany, and Singapore, as well as the President of the Asian Development Bank.

Deputy Prime Minister Lee wrapped up 25 official meetings during his visit to Bangkok from Oct. 14 to Oct. 16.

His brisk pace demonstrated Korea’ outstanding position in the world since global attention was focused on the booming semiconductor industry and the Korean economy.

Korea’s rising standing in the world economy was on full display in Bangkok. IMF released global economic outlooks for the year 2026 on the occasion of the 2026 IMF/WBG Annual Meetings on Oct. 13.

IMF projected Korea’s economic growth at 3.3, up 0.7 percentage points, which is above the average growth of advanced countries standing at 2.1 percent.

IMF lowered its forecasts for South Korea's government debt to gross domestic product ratio through 2031, citing its strong economic growth and prospects for improved revenue conditions, the budget ministry said.

In the IMF Fiscal Monitor report, released on Oct. 14, IMF forecast that Korea’s government gross debt-to-GDP ratio would reach 47.3 percent this year, projecting that it will remain in the 40 percent range through 2031.

The 2026 projection marks a decrease of 7.1 percentage points from the April edition.

The IMF expects the ratio will reach 49.7 percent in 2031, down 13.4 percentage points from its April forecast.

Deputy Prime Minister Lee told Korean reporters, who accompanied the delegation, the Korean economy will grow between 3.4 percent and 3.6 percent this year, up 3 percent from the previous forecast.

DPM Lee Hyoung-il poses with Gisela Sánchez, President of the Central American Bank for Economic Integration (CABEI) after they signed an agreement on the opening of an AI digital transformation center at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on Oct. 16.

Korea and Japan Agree to Extend Korea-Japan Currency Swap Arrangement

On Oct. 15, Deputy Prime Minister and Minister of Finance and Economy Lee met with Japanese Finance Minister Katayama Satsuki in Bangkok, Thailand.

During the meeting, the two ministers agreed to extend the Korea-Japan currency swap arrangement, which is set to expire this year, and discussed ways to further develop bilateral economic and financial cooperation.

Deputy Prime Minister Lee and Finance Minister Katayama shared the view that the foreign exchange authorities of both countries currently maintain sufficient foreign currency liquidity.

Recognizing the importance of the currency swap arrangement as a symbol of financial cooperation and coordination between Korea and Japan, they agreed to extend the existing arrangement at its current size of $10 billion.

The Korea-Japan currency swap arrangement was signed in December 2023 for a three-year term, with a total amount of $10 billion, and was scheduled to expire this year.

In addition, the two ministers agreed to hold the next Korea-Japan Finance Ministerial Dialogue in Korea at the earliest possible date, in line with the agreement reached at the 10th Korea-Japan Finance Ministerial Dialogue held in Tokyo in March.