'Korea to expand aid to level of world's top 10 donors': finance minister

Asian Development Bank (ADB) President Masatsugu Asakawa, left, and Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho greet one other during the opening of Korea Seminar Day, a program of the ADB's 56th annual meeting, at Songdo Convensia in Incheon's Sondgo International Business District, Tuesday. Yonhap

ADB seminar shares Korea's economic success to overcome post-pandemic era challenges

By Yi Whan-woo

INCHEON ― Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho pledged to expand the Korean government's aid for developing countries to the level of the world's top 10 donor countries, during the 56th annual meeting of the Asian Development Bank (ADB) in Incheon's Songdo International Business District, Tuesday.

In his opening speech for Korea Seminar Day, a one-day seminar organized by the Korean government as a part of the meeting's programs, Choo urged Asian countries to work closely for connectivity on government policies, trade and digital technology.

His remark came as Korea marks its 35th year since becoming wealthy enough to no longer receive aid from the ADB, a Philippines-headquartered organization committed to social and economic development in Asia.

His remark was also in line with "Rebounding Asia: Recover, Reconnect, and Reform," the main theme of this year's ADB meeting in the face of multiple global challenges following the pandemic era, such as de-globalization and trade protectionism.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho gives an opening speech for Korea Seminar Day at Songdo Convensia in Incheon's Sondgo International Business District, Tuesday. Yonhap

Asian Development Bank (ADB) President Masatsugu Asakawa delivers a congratulatory speech for Korea Seminar Day at Songdo Convensia in Incheon's Sondgo International Business District, Tuesday. Yonhap

"Korea will actively contribute to the regional economic development and integration by sharing our policy achievements and development experiences," Choo said during the opening of the seminar at Songdo Convensia.

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He went on to say, "Korea will expand its ODA volume to the level of the world's top 10 donors, and actively strengthen our cooperation for the development of the Asia-Pacific region."

ODA is an abbreviation for official development assistance ― government aid that promotes and specifically targets the economic development and welfare of developing countries.

Concerning Asia's economy as a whole, Choo said it will "rise as a mainstay of the global economy in the future" but currently faces "polycrisis" risks.

He accordingly underlined that strengthening policy connectivity, trade connectivity and digital connectivity, respectively, is crucial to address global uncertainty, geoeconomic fragmentation and digital innovation.

Participants of Korea Seminar Day listen to Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho delivering a speech at Songdo Convensia in Incheon's Sondgo International Business District, Tuesday. Yonhap

The opening ceremony was joined by ADB President Masatsugu Asakawa and National Research Council (NRC) for Economics, Humanities and Social Sciences Chairman Jung Hae-gu, who each delivered a congratulatory speech, as well as economists from the ADB, the International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), both active and retired, and university professors from Korea and abroad.

A host country can address areas of specific interest at the seminar, in relation to the respective theme of the given ADB meeting.

In that regard, the seminar focused on Korea's economic success as an aid recipient-turned-donor country, sharing its policy directions and addressing how it can take initiatives on key global economic initiatives in the future.

Calling Korea a leader in global innovation, the ADB president said the focus of the seminar is anticipated to showcase Korea's experience to the participants and expressed his gratitude to Korea for the content it presented.

The NRC chairman highlighted Korea is the world's only aid recipient-turned-donor country, expressing hope that the seminar will be helpful for the Asia-Pacific region to cope with urgent issues in the pandemic era.

The seminar began with a keynote session between Nobel Prize-winning economist Michael Kremer and Korea Development Institute (KDI) President Cho Dong-chul, followed by four regular sessions.

Kremer discussed how his signature O-ring theory, which proposes that tasks of production must be executed proficiently together in order for any of them to be of high value, can be applied to Korea's rapid economic development and act as a lesson for those that want to emulate the country's successes.

The four regular sessions were titled, "Recover: Post-pandemic Economic Challenges and Policy Redesign in Asia," "Reconnect: Enhancing Regional Cooperation in Asia amid Global Supply Chain Disruptions," "Reform 1: Digital Transformation and Asia's Cooperation in the Era of Global Recession" and "Reform 2: Post-pandemic Fiscal Management System for Fiscal Sustainability."