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A generation later, Korea and the IMF embrace as friends and partners

Published: 31 Oct. 2025, 18:40 Updated: 31 Oct. 2025, 18:52

SEO JI-EUN
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President Lee Jae Myung, right, shakes hands with Kristalina Georgieva, managing director of the International Monetary Fund, during a summit at the Gyeongju Hwabaek International Convention Center in Gyeongju, North Gyeongsang, on Oct. 31. [PRESIDENTIAL PRESS CORPS]

GYEONGJU, North Gyeongsang — President Lee Jae Myung met with International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Gyeongju on Friday to discuss Korea’s economic outlook and the world’s uneven recovery, stressing the importance of reform and inclusive growth in building a fair and resilient economy.

“In the memories of many Koreans, the word ‘IMF’ brings back some bad memories of the past,” Lee said at the start of the meeting, recalling the 1997 Asian financial crisis. “Of course, those bad memories were not because of the IMF itself, but because our own government at the time had failed to make the necessary precautions. I hope the IMF will continue to provide good advice, check global risks and help prevent such crises so that the world economy can grow in a fairer and more stable way.”

Although the IMF is not a member economy of the Asia-Pacific Economic Cooperation (APEC), it attended the summit in Gyeongju as a special guest nation, invited by Korea along with the United Arab Emirates.

Lee explained that under his administration, political uncertainty has been swiftly resolved and market confidence restored, citing the Kospi index surpassing 4,000 points for the first time ever as evidence of optimism among domestic and foreign investors, according to the presidential office.

He noted that government stimulus measures and swift execution of the supplementary budget have improved consumer sentiment, helping the economy regain momentum.

“We hope this positive trend will continue into next year,” he said.

The president also outlined his key economic policy priorities: addressing structural challenges such as slowing global trade, semiconductor demand adjustments, demographic aging and a decline in potential growth.

He said the government is “accelerating the digital and AI transformation to build an ultra-innovative economy,” while modernizing financial and foreign exchange systems to ensure capital flows into “productive finance” that supports corporate investment and industrial innovation.

Lee further emphasized inclusive growth as the foundation of sustainable development, arguing that polarization remains a major cause of low growth.

“While inclusive growth benefits the entire economy in the long run, some groups may resist due to short-term losses,” Lee said, urging international institutions such as the IMF and World Bank to “conduct more research proving that inclusive growth ultimately benefits all nations.”

Georgieva praised Korea’s swift recovery, saying recent data on consumption and exports indicate the economy is rebounding and could return to its potential growth rate next year.

“Financial assistance to Korea is now a story of the distant past,” she said.

“Today, Korea is an example for other countries — a source of financial support for less-developed nations,” she added. “We admire your achievements so far and, even more so, your plans for the future to keep expanding innovation as the main driver of economic growth and to lift the country’s potential growth rate.”

The IMF chief offered two pieces of advice: to continue “significant structural reforms” without hesitation, and to “pursue cooperation with other nations” that is not only in Korea’s self-interest, but also in the world's best interest.

Stronger regional and global linkages, she said, can enhance economic resilience.

Georgieva also cited her recent meeting with Deputy Prime Minister Koo Yoon-cheol in Washington and said Korea’s ultra-innovative economy plan could serve as a model for others.

Georgieva agreed with Lee on the importance of inclusive growth and said that the IMF will feature the topic in greater depth at its annual regional conference in Thailand next March, including a special session dedicated to the concept advocated by Lee.

She added that she had been deeply impressed by Korea’s achievements in high-tech shipbuilding and that the world can learn much from Korea’s innovation.

Lee expressed appreciation for the IMF’s efforts to ensure global financial stability and said that Korea will actively contribute to supporting low-income and vulnerable countries through IMF-led initiatives, leveraging its own development experience.

BY SEO JI-EUN [[email protected]]