ASEAN+3 nations discuss economic responses amid Middle East conflict
President Lee Jae Myung takes a commemorative photo with the leaders of each country at the ASEAN-Korea Summit held at the Kuala Lumpur Convention Center in Malaysia, Oct. 27. Korea Times photo by Wang Tae-seok
Deputy finance ministers from Korea, China, Japan and the Association of Southeast Asian Nations (ASEAN) shared their assessments of the economic impact and government responses amid uncertainties stemming from the Middle East conflict, Seoul's finance ministry said Thursday.
Their talks came during the ASEAN+3 Finance and Central Bank Deputies' Meeting, held virtually Wednesday, according to the Ministry of Finance and Economy. Korea was represented by Moon Ji-sung, deputy minister for international economic affairs.
During the meeting, major economic organizations, such as the International Monetary Fund (IMF) and the Asian Development Bank (ADB), warned that the global economy faces significant downside risks due to rising geopolitical tensions in the Middle East.
They also emphasized the need for swift, targeted fiscal support to address growing uncertainties and assist vulnerable groups, along with monetary policy responses and efforts to strengthen economic resilience.
The participating countries shared such an assessment and exchanged views on the economic impact and their respective policy responses, the ministry said.
Moon outlined Seoul's ongoing efforts to stabilize prices and support vulnerable groups, including the recent implementation of a price cap on petroleum products and its push for a supplementary budget without issuing government bonds.
Moon also proposed closer coordination among the regional members, noting that the Middle East conflict poses a shared risk, and suggested real-time information sharing on policy responses.
Participants also discussed ways to further develop the Chiang Mai Initiative Multilateralization (CMIM), a $240 billion currency-swap arrangement established in 2010 as a regional financial safety net.
The outcomes of the deputies' meeting are expected to be finalized at the upcoming ASEAN+3 Finance Ministers and Central Bank Governors Meeting, scheduled to be held in Samarkand, Uzbekistan, in May.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.