Let's build supply chains together, Yoon tells Asian countries

President Yoon Suk Yeol gives a speech at the opening ceremony of the 56th Asia Development Bank meeting held in Incheon on Wednesday. [YONHAP]

President Yoon Suk Yeol vowed to cooperate with Asian countries to build supply chains for chips and reusable batteries.

"Korea, with the world's best production technologies and manufacturing capacity in key industries such as chips, reusable batteries and bio, will actively take part in constructing the supply chain with Asian countries," Yoon said in an opening remark for the Asia Development Bank (ADB) meeting in Incheon Wednesday.

"I believe the Asian region, which consists of countries with abundant mineral resources, manufacturing and production capacity, cutting-edge technologies and excellent workforces, will be able to sufficiently respond to the challenge through cooperation of countries within the area."

The 56th annual ADB meeting, a four-day event, started on Tuesday under the theme of "Rebounding Asia: Recover, Reconnect, and Reform." Attended by 5,000 people from 68 countries, the meeting is the third such ADB gathering hosted by Korea, after Seoul in 1970 and Jeju Island in 2004.

Yoon stressed cooperation among the member countries for joint prosperity and vowed to actively participate in dealing with climate change and the digital divide.

Korea announced Tuesday it would be participating in the establishment of a new program that provides financial guarantees for ADB partners, the Innovative Finance Facility for Climate in Asia and the Pacific.

The program aims to raise $3 billion.

At the ceremony, Finance Minister Choo Kyung-ho noted the importance of reconnection and reform to battle continued economic uncertainty.

"The key to rebounding Asia lies in sharing universal values of freedom, openness and solidarity along with close cooperation among countries," Choo said in his speech. "We need to address economic and geopolitical fragmentation and highlight the rules of fair trade once again."

"When it comes to reshaping the global supply chain, digitalization, health and climate cooperation, we need to create a robust multi-layered structure for cooperation," Choo said, noting such structures include consultation channels and high-level dialogue.

"We need to pursue new approaches when responding to rapid digitization, aging populations and normalizing increased government expenditure," he added. "Korea will gladly take part in efforts to find solutions."

The ADB and Korea signed three strategic agreements Wednesday to build "resilience" among developing economies of Asia and the Pacific.

In the documents, they agreed to work toward establishing an ADB-Korea Climate Technology Hub in Seoul; providing $100 million to a fund aimed at narrowing the divide between countries in terms of access to digital technologies; and making a $5 million contribution to a multi-donor trust fund designed to address challenges, including climate change and gender inequality.

In a separate event, Bank of Korea Gov. Rhee Chang-yong attributed Korea’s rapid economic growth to “minor” corruption compared to other countries, and strict “capital controls” of the outflows “in the beginning,” with the funds spent on development of the country’s infrastructure.

Rhee on the same day said it’s too early to discuss rate cuts, citing sticky core inflation, in an interview with CNBC.

Given that Korea’s inflation is “above the target, we have to wait and see and then you know, it would be a little bit premature to talk about pivot at this moment,” Rhee said.

BY JIN MIN-JI [jin.minji@joongang.co.kr]