June 29, 2023
Joint Press Release: The Eighth Japan-Korea Finance Ministerial Dialogue (Tokyo, June 29, 2023)
Joint Press Release
The Eighth Japan-Korea Finance Ministerial Dialogue
June 29, 2023, Tokyo, Japan
Ⅰ.Introduction
1. Mr. SUZUKI Shunichi, Japan’s Minister of Finance, and Mr. CHOO Kyungho, Korea’s Deputy Prime Minister and Minister of Economy and Finance met for the 8th Japan-Korea Finance Ministerial Dialogue on June 29, 2023 in Tokyo, Japan. The Ministers exchanged their views on wide-ranging issues including the current global and regional economy and the ways to strengthen bilateral and multilateral cooperation.
Ⅱ.Global and Reginal Economy
2. The Ministers recognized that global and regional economy has shown resilience against multiple shocks including the COVID-19 pandemic, Russia’s war of aggression against Ukraine, and associated inflationary pressures. Nevertheless, the Ministers acknowledged heightened uncertainty about the global and regional economic outlook and shared the importance of remaining vigilant and staying agile in policy actions to support regional economic growth and maintain financial stability.
3. The Ministers are united in their condemnation of Russia’s war of aggression against Ukraine. Russia’s war has exacerbated global economic challenges, including through adding to inflationary pressures, disrupting supply chains, and heightening energy and food insecurity. The Ministers remain determined to foster international cooperation to address the global economic hardships caused by Russia’s war, and call for an immediate end of Russia’s illegal war against Ukraine.
Ⅲ.Cooperation in G20 and Follow-up of G7's Dialogue with Partner Countries
4. The Ministers reaffirmed continued close collaboration in the G20 process and agreed to jointly tackle a range of global economic challenges with the aim of achieving strong, sustainable, balanced and inclusive growth.
5. The Ministers reiterated the urgency of addressing debt vulnerability in low- and middle-income countries and supported the G20’s efforts to improve the implementation of the “Common Framework” in a predictable, timely, orderly and coordinated manner. The Ministers shared the importance of swift conclusion of Sri Lanka’s debt restructuring under the creditor committee. The Ministers also agreed on the importance of enhancing debt transparency and supported broadening the data sharing exercise to the G20. The Ministers look forward to further progress on debt issues under the leadership of Korea as a G20 IFA Working Group co-chair.
6. The Ministers agreed to support and encourage the expedition of the ongoing work on the evolution of the MDBs to transform their business models to better address transboundary challenges. The Ministers also reaffirmed their commitment to developing an ambitious G20 Roadmap on implementing the recommendations of the G20 MDB Capital Adequacy Framework Review, and to urging MDBs to increase their efforts on the implementation while safeguarding MDB’s long-term financial sustainability, robust credit ratings and preferred creditor status.
7. The Ministers agreed to deepen cooperation as the members of the same constituency towards the successful implementation of projects following the First Call for Proposals of the Pandemic Fund and contribute to efforts at the G20 Joint Finance-Health Task Force to establish a "surge" financing framework that will deploy necessary funds quickly and efficiently in response to pandemics while thoroughly assessing existing financing sources and duly considering discussions in other global forums.
8. The Ministers recognized the urgent need to address existing vulnerabilities within the highly concentrated supply chains of clean energy products and to support low- and middle-income countries in playing bigger roles in the midstream and downstream of the supply chains. Based on their discussions including at the G7 Finance Ministers and Central Bank Governors’ Meeting in Niigata in May 2023, the Ministers committed that two countries will work together to swiftly establish and implement “Partnership for RISE (Resilient and Inclusive Supply-chain Enhancement)” by combining finance, knowledge and partnership.
Ⅳ.Cooperation in Third Countries, including through Infrastructure Investment
9. The Ministers welcomed the signing of the Memorandum of Understanding (MOU) between Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Korea (KEXIM). Through the MOU, JBIC and KEXIM will enhance cooperation in developing quality infrastructure projects in third countries, especially in the Indo-Pacific region; establishing diverse and resilient supply chains; and achieving global carbon neutrality, through knowledge/experience sharing and opportunity seeking for joint support by JBIC and KEXIM.
Ⅴ.Bilateral and Regional Finance Cooperation
10. The Ministers welcomed the success of the 26th ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting, under the co-chairmanship of Japan, and the 23rd Trilateral Finance Ministers and Central Bank Governors’ Meeting of China, Japan and Korea, under the chairmanship of Korea, both of which were held in Incheon, Korea, on May 2, 2023.
11. The Ministers reiterated that the scarring effects of the COVID-19 pandemic, its economic impact, and the uncertainties surrounding the global and regional economies have highlighted the importance of further strengthening bilateral and regional financial cooperation. In this regard, to further strengthen the Chiang Mai Initiative Multilateralisation, the Ministers urged the swift creation of the rapid financing facility and the development of the roadmap on possible financing structures including through the study on the pros and cons of paid-in capital structure.
12. The Ministers also agreed on the resumption of the Bilateral Swap Arrangement for USD 10 billion, with an aim to enhance the regional financial safety net. In addition, the Ministers also agreed to continue discussions on possible further improvements in bilateral financial cooperation.
13. To strengthen resilience against potential economic and financial losses from natural disasters, the Ministers agreed to promote disaster risk financing in the region, including through the Southeast Asia Disaster Risk Insurance Facility.
Ⅵ.Other Areas of Bilateral Cooperation
14. The Ministers reached an agreement on the following cooperative actions in key areas of bilateral cooperation.
- Customs. The Ministers agreed to hold the 32nd Japan-Korea Bilateral Customs Heads’ Meeting in the second half of this year in Korea, including to discuss enforcement of sanctions against Russia and the Democratic People's Republic of Korea (DPRK) as well as cross-border e-commerce issue and other enforcement issues.
- International Taxation. The Ministers agreed to hold periodical discussions between technical experts on international taxation issues, with a view to improving investment and business environment including tax certainty as well as enhancing cooperation in international tax matters.
- Staff Exchange. The Ministers agreed to launch a short-term staff exchange program between two Ministries for better mutual understanding of economic policies and closer relationship among staffs.
- Proliferation Financing. The Ministers shared the serious concerns on the threat posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction and proliferation financing that enables the DPRK to launch an unprecedented number of ballistic missiles including ICBMs, and to advance its nuclear program. The Ministers agreed to further promote cooperation in the area of counter-proliferation finance. The two governments will start discussion on risk mitigation of proliferation financing in the region.
15. The Ministers recognized the importance of promoting mutual financial investment. In this regard, Korea’s effort for enhancing mutual financial investment and Investor Relations (IR), including dissemination of relevant information, towards Japanese investors was welcomed.
Ⅶ.Conclusion
16. The Ministers were of the same view that the Japan-Korea Finance Ministerial Dialogue, which began in 2006, is a very useful forum where the two finance ministries share various experience and improve mutual understanding. The Ministers also agreed that the resumed Dialogue will contribute to the “shuttle diplomacy” between the leaders of the two countries. The Ministers shared their intention to further enhance communication between the ministries at various levels and in various areas and agreed to hold the 9th Japan-Korea Finance Ministerial Dialogue in Korea in 2024.