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South Korea Pushes Regional Unity to Counter Economic Fallout from Iran War

South Korean Finance Minister Koo Yun-cheol urged regional cooperation to address economic uncertainty from the U.S.-Israeli war against Iran during the ASEAN+3 meeting in Uzbekistan. He emphasized the importance of ASEAN+3 as a crisis buttress and highlighted South Korea's 26.2 trillion-won extra budget. Koo also chaired a trilateral meeting with China and Japan to address downside risks. Separately, South Korean Min Jee-nah was appointed as a new director at the World Bank Group.

Key Points: S Korea urges ASEAN+3 cooperation on Iran war economic impact

  • South Korea calls for ASEAN+3 cooperation on Iran war economic risks
  • Finance Minister Koo Yun-cheol highlights government's $17.7B extra budget
  • Trilateral meeting held with China and Japan on downside risks
  • South Korean Min Jee-nah appointed new WBG director
2 min read

S. Korea calls for regional cooperation in tackling economic impact from Iran war

Finance Minister Koo Yun-cheol calls for ASEAN+3 unity against economic risks from the Iran war, as South Korea unveils a $17.7B budget and appoints a new World Bank director.

"The Middle East war has further expanded regional economic uncertainty. - Koo Yun-cheol"

Seoul, May 3

Finance Minister Koo Yun-cheol on Sunday called for strengthening regional cooperation in responding to growing external economic uncertainty from the U.S.-Israeli war against Iran, the finance ministry said.

Koo made the call during the 29th meeting of ASEAN+3 finance ministers and central bank governors held Sunday in Samarkand, Uzbekistan, according to the ministry, reports Yonhap news agency.

ASEAN+3 involves member states of the Association of Southeast Asian Nations (ASEAN) and its three Northeast Asian dialogue partners -- South Korea, Japan and China.

"The Middle East war has further expanded regional economic uncertainty," Koo said. "Against this backdrop, ASEAN+3 cooperation, which has served as a buttress during a regional crisis, is becoming increasingly important."

The finance minister said the Middle East crisis poses a threat to the South Korean economy, highlighting the government's efforts to prop up the economy, including the creation of the 26.2 trillion-won (US$17.7 billion) extra budget.

Separately, Koo chaired a trilateral meeting of finance ministers and central bank governors from South Korea, China and Japan.

He also called for stepped-up cooperation among the three nations in dealing with downside economic risks from the Iran war, according to the ministry.

Meanwhile, a South Korean has been appointed as the new director of market and counterparty risk at the World Bank Group (WBG), the finance ministry said on Sunday.

Min Jee-nah, the former head of credit for state-owned enterprises and reinsurance at the Multilateral Investment Guarantee Agency (MIGA), will take on the role starting next month, the ministry added.

She will become the fourth South Korean national to take on a director-level position at the global financial institution, according to the ministry.

The WGB, is a family of five international organisations that provides low-interest rate loans, policy advice and technical assistance to developing countries, with the goal of reducing poverty and increasing the income of such nations.

- IANS

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Reader Comments

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Sarah B
Interesting to see how the Middle East crisis is affecting economies as far as East Asia. We in the US are also feeling the heat with oil prices rising. But why is South Korea's finance minister talking about creating a massive budget—is that really sustainable? I hope they're not just throwing money at the problem.
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Vikram M
Good to see South Korea taking leadership in these forums. The appointment of Min Jee-nah to the World Bank is also a proud moment! India should aim for more such positions in global institutions—we have the talent. On the war front, I just hope sanity prevails soon. Too much instability.
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Michael C
South Korea is being proactive, but I wonder how much these meetings actually achieve. The Iran war is a geopolitical mess that can't be fixed by regional economic cooperation alone. Still, it's better than nothing. The extra budget they mentioned sounds like a band-aid.
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Rajesh Q
As an Indian, I feel this is a real concern for us too. Our crude oil imports are heavily dependent on this region. If South Korea is worried, we should be doubly worried! The government should be talking to ASEAN and East Asia more seriously for energy security. Kudos to Korea for at least trying to do something.
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Emma D
War in the Middle East is a lose-lose for everyone except maybe the arms dealers. South Korea's call for cooperation is logical, but we've seen these ASEAN+3 meetings before—lots of talk, little action. I hope the trilateral meeting with China and Japan yields something concrete.

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