President Lee Proposes Reducing Gaps and Inequality at G20—Calls for WTO Functionality to Be Restored

(Seoul=Yonhap Infomax) Ji Seo Jeong – President Lee Jae-myung on the 22nd (local time) reaffirmed his strong support for the international free trade system, emphasizing, "Restoring the World Trade Organization (WTO)'s functionality serves the interests of us all."

Speaking at Session 1 of the Group of 20 (G20) Summit in Johannesburg, South Africa, President Lee formally proposed to G20 leaders a shift toward an economic system that alleviates inequality between nations.

As the 16th speaker in the first session, themed "Inclusive and Sustainable Growth That Leaves No One Behind," President Lee stated, "The world is currently facing a complex economic crisis, including low growth and imbalances."

He warned, "If disparities and imbalances continue to deepen, not only our neighbors but even our own futures will be at risk," adding, "To reduce gaps and inequality and broaden opportunities for shared prosperity, I would like to propose the following three solutions."

President Lee outlined three key proposals: fundamental improvement of economic structures for sustainable growth, creation of a predictable trade and investment environment to enhance growth potential, and strengthening development cooperation to support the growth of developing countries.

"To move forward, we must allocate resources intensively to high-growth potential sectors to generate wealth and establish a virtuous cycle that reduces debt ratios," Lee said. "To this end, South Korea is pursuing a 'performance-based fiscal policy' by investing in future growth sectors such as artificial intelligence (AI) to boost total output and reduce long-term debt ratios."

He continued, "Developing economies are constrained in their ability to invest for growth due to excessive debt burdens, weakening the drivers of sustainable growth. We must not relent in our efforts to strengthen 'debt sustainability' to address these challenges facing developing countries."

President Lee also expressed South Korea's commitment to actively participate in various G20 initiatives, including the implementation of the 'Africa Cooperation Framework.'

He further stressed, "To enhance growth potential, we need to establish a predictable trade and investment environment. Restoring the WTO's functionality serves the interests of us all."

"South Korea will actively cooperate to ensure the success of next year's WTO Ministerial Conference in Africa," Lee said. "We will also work to ensure that the 'Investment Facilitation Agreement,' which South Korea has led, is formally adopted at next year's WTO Ministerial Conference."

Additionally, President Lee highlighted efforts to enhance the effectiveness of development cooperation for developing countries, referencing collaboration with developing member states.

"Through the Busan Global Partnership Forum, South Korea has continuously advanced measures to improve development effectiveness," he said. "Having led the adoption of evaluation and reporting systems for multilateral development bank reform roadmaps, we will continue to actively participate in reform efforts for multilateral development banks."

President Lee concluded, "We must stand together to move toward a sustainable future. We will do our utmost to pursue 'inclusive growth' so that all can share in opportunities and no country is left behind."

jsjeong@yna.co.kr

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