By Kim Jae-kyoung
The G20 Seoul Summit ended Friday. Despite detractors’ claim that it was a conditional success, the first summit of its kind hosted by a non-G7 member country offered a great deal of progress on many thorny issues of global significance.
President Lee Myung-bak was spotlighted by the media for his performance as a mediator among major economies. He also received praise from heads of state at the Asia-Pacific Economic Cooperation (APEC) Summit held in Japan over the weekend.
Lee surely deserves some of the compliments but his four key aides deserve more of the success. They are Yoon Jeung-hyun, minister of strategy and finance; Sakong Il, chairman for the G20 Summit Preparation Committee; Rhee Chang-yong; vice-chief of the G20 Summit Preparation Committee; and Shin Je-yoon, deputy finance minister for international affairs.
“Most of the agreements reached at the Seoul summit were actually made at the Gyeongju meeting attended by the G20 finance ministers and central bank governors last month,” said a ranking government official, asking not to be named.
In fact, key achievements in Seoul ― moving toward a market-determined exchange rate; refraining from any competitive devaluation of currencies; the IMF reform; development issues; and introducing indicative guidelines on current account balance ― are no more than just endorsement of the accords from the Gyeongju meeting.
In this regard, Yoon was the one who led the summit to its success. It is demanding to arbitrate in a dispute between economic powers, such as the United States and China. Yoon urged his counterparts to find the middle ground on key issues, such as IMF reform and currencies, claiming that a failure would drive the global economy into another crisis.
“Throughout the meeting, Yoon showed leadership as the chair by reacting quickly to rapidly-developing situations with his rich experience and know-how,” said another official who participated at the Gyeongju meeting.
Prior to the meeting, Yoon travelled around the world for two weeks to persuade his counterparts in Russia, Germany, France, Brazil and the U.S., which many believe helped the G20 reach a sensible agreement in Gyeongju.
One episode in Gyeongju highlighted his leadership. When talks hit a snag due to the currency feud, there were rumors that Yoon would be sacked after the meeting. But on the final day, he led the finance ministers to reach a last-minute compromise, which solidified his position.
Sakong was an all-round player from beginning to end. Although he was the chief of the preparation committee, he did not refuse the role of a firefighter when the committee faced obstacles.
He has built an extensive international network by serving as chairman of the Institute for Global Economics and the president of the Korea International Trade Association. Based on his network and knowhow, he played a key part both in the country being named the host of the G20 summit and persuading the member countries to agree on the Seoul Declaration.
In particular, when talks on a global financial safety net hit a snag, he flew to the U.S. six times to meet with Larry Summers, U.S. National Economic Council Chairman. A global financial safety net is one of the key agendas initiated by the Korean government, along with development issues. Reform of the IMF is considered another byproduct of his efforts.
While Yoon and Sakong were at the forefront of the summit, Deputy Minister Shin Je-yoon and Committee Vice Chief Rhee Chang-yong were heroes behind the scenes.
Shin has been serving in his current post since March 2003. After the preparation committee was launched, he spent more time on the committee. Scheduling the first meeting in February in Incheon, he chaired four deputy ministers’ gatherings where the basic framework and draft for the G20 Seoul Summit were created.
With excellent English skills and a strong sense of humor, Shin has gained recognition and credit among G20 deputy ministers. Since he built a good relationship with his counterparts over a long period, he could play a crucial role in tabling important issues on the G20’s key agenda.
In particular, his extensive experience and deep knowledge on international finance helped the G20 find a practical solution by bridging the gap between advanced and developing countries.
Rhee was Korea’s sherpa or chief negotiator. His main duty was to fine-tune the key agenda for the Seoul summit in advance on behalf of President Lee. As a former economics professor at Seoul National University and vice chairman of the Financial Services Commission, he played an important role in developing key agenda that the Korean government wanted to include in the summit.
In particular, he devised the theoretical basis for the development issue, the core of the Korean Initiative, which was fully supported by G20 leaders in Seoul, as well as, contributed to the introduction of an indicative guideline on the current account balance, which was a breakthrough for the G20 to reach a compromise at the Gyeongju meeting.