Korea Wants More Voting Rights at World Bank
By Yoon Ja-young
Staff Reporter
Strategy and Finance Minister Yoon Jeung-hyun has called for more voting rights for Korea in the World Bank.
``Korea should have its voting right increased commensurate with its economic power,'' Yoon was quoted as saying during a meeting with World Bank President Robert Zoellick, in Istanbul, Saturday.
Yoon is in Turkey to attend the 2009 Annual Meeting of the International Monetary Fund (IMF) and the World Bank in Istanbul, Oct. 6 and 7.
Voting rights reform has been a major issue on the agenda at global economic and financial meetings over the past few years. Emerging economies, including Korea and China, have demanded the reallocation of quotas in the IMF and the World Bank.
A consensus has been reached that the current quota is outdated, and under-represents the size and significance of big, emerging economies. However, European countries have shown reluctance to give up their voting stakes.
At the G20 meeting held in the United States last month, the leading economies reportedly agreed to hand over at least 3 percent of the World Bank voting rights to newly emerging economies, and increase the quota for developing economies by over 5 percent at the IMF.
The minister also said that Korea will actively participate in a capital increase for the World Bank.
According to the ministry, Zoellick agreed that there should be changes in voting rights to reflect the size of the economies, and appreciated Korea's plan for funding.
Yoon said that Korea would pay back the loan that it got from the World Bank between 1963 and 1974 in advance. It currently owes $35 million, due to be paid back by 2022 ― but the minister said the sum would be returned by the end of this year so that more low-income countries could benefit from the fund.
The minister also signed an agreement to provide 9.5 billion won for two World Bank trust funds, which aim to support countries suffering from food crises and promote economic stability.