South Korea, US finance and central bank chiefs hold first 2+2 talks in Bangkok
In short
South Korean Deputy Prime Minister and Finance Minister Lee Hyoung-il (이형일) and Bank of Korea Governor Shin Hyun-song (신현송) met US Federal Reserve Chair Kevin Warsh and US Deputy Treasury Secretary Francis Brooke (프랜시스 브룩) in Bangkok on October 16. South Korea's finance ministry said it was the first time the two countries' finance ministries and central banks had met in a four-way format. The participants discussed the recent economic situation and economic and financial cooperation.
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South Korean Deputy Prime Minister and Finance Minister Lee Hyoung-il (이형일) and Bank of Korea Governor Shin Hyun-song (신현송) met US Federal Reserve Chair Kevin Warsh and US Deputy Treasury Secretary Francis Brooke (프랜시스 브룩) in a 2+2 meeting in Bangkok on October 16, South Korea's finance ministry said. The meeting was held at the Queen Sirikit National Convention Center (QSNCC). It was the first time the two countries' finance ministries and central banks had met in a four-way format. The participants discussed the recent economic situation and ways to cooperate on economic and financial matters. [ 3 , 4 , 5 , 6 , 7 , 9 ]
A finance ministry official said the meeting was intended to strengthen the policy mix between the two countries' fiscal and monetary policies, and that it mattered because it set up a framework for fiscal and monetary authorities to respond faster and more effectively through close coordination when an external financial shock occurs. Lee said the four-way meeting was especially meaningful because it was the first time the two finance ministries and central banks had come together in this form. [ 4 , 5 , 6 , 7 ]
The meeting took place while officials were in Bangkok for the IMF and World Bank annual meetings; Seoul Shinmun, the Korea Economic Daily and Asia Economy also linked it to G20 meetings of finance ministers and central bank governors. Dong-A Ilbo reported that it began at 1 p.m. and lasted about 30 minutes, and Seoul Shinmun reported that it was arranged at short notice. Yonhap, Seoul Shinmun, Asia Economy and Dong-A Ilbo said it was unusual for the US Treasury and the Fed to appear together, given concerns over the Fed's independence. [ 4 , 5 , 6 , 7 , 9 ]
US Treasury Secretary Scott Bessent did not attend. Dong-A Ilbo said he skipped the annual meetings because of domestic commitments. Lee held a video meeting with Bessent from South Korea on October 13, just before leaving, and reaffirmed the importance of economic and financial cooperation, according to Yonhap and Seoul Shinmun. Asia Economy reported that Erin Brown (에린 브라운), US Treasury under secretary for international affairs, attended the meeting. [ 4 , 5 , 7 , 9 ]
The Korea Economic Daily reported that a Korea-US currency swap, an issue that had drawn attention, was not discussed. It cited observers who expected that investment in the US and foreign exchange stability were discussed, and reported that the two sides discussed policy coordination to ease sharp exchange rate volatility. The paper said the won closed at 1,331.4 per dollar in Seoul at 3:30 p.m., down 13.2 won and the lowest 3:30 p.m. level since October 2, 2024. It also reported that Shin and Warsh both sit on the board of the Bank for International Settlements, and said some view their relationship as a factor behind the meeting. [ 6 ]
Why it matters
A ministry official said the meeting was meant to strengthen the policy mix between the two countries' fiscal and monetary policies and to build a framework for faster joint responses to external financial shocks. Several outlets noted that the US Treasury and the Fed rarely appear together because of concerns over the Fed's independence. The Korea Economic Daily reported that a Korea-US currency swap was not discussed.
Key facts
- Lee Hyoung-il and Shin Hyun-song met Kevin Warsh and Francis Brooke in a 2+2 meeting in Bangkok on October 16. [ 3 , 4 , 5 , 6 , 7 , 9 ]
- The meeting was held at the Queen Sirikit National Convention Center (QSNCC). [ 3 , 5 , 6 , 7 ]
- It was the first time the two countries' finance ministries and central banks met in a four-way format. [ 4 , 5 , 6 , 7 , 9 ]
- The talks covered the recent economic situation and economic and financial cooperation between the two countries. [ 4 , 5 , 6 , 7 , 9 ]
- The meeting took place on the sidelines of the IMF and World Bank annual meetings in Bangkok. [ 4 , 5 , 6 , 7 , 9 ]
- US Treasury Secretary Scott Bessent did not attend; Lee spoke with him by video conference from South Korea on October 13. [ 4 , 5 , 9 ]
- Dong-A Ilbo reported the meeting began at 1 p.m. and lasted about 30 minutes. [ 9 ]
Confirmed by several sources
- Lee Hyoung-il and Shin Hyun-song met Kevin Warsh and Francis Brooke in Bangkok on October 16. [ 3 , 4 , 5 , 6 , 7 , 9 ]
- It was the first four-way meeting between the two countries' finance ministries and central banks. [ 4 , 5 , 6 , 7 , 9 ]
- A finance ministry official said the meeting aimed to strengthen the policy mix of fiscal and monetary policy and to set up a framework for faster, more effective responses to external financial shocks. [ 4 , 7 ]
- Lee said the four-way meeting was especially meaningful because it was the first time the finance ministries and central banks had met in this form. [ 5 , 6 , 7 ]
- Scott Bessent did not attend, and Lee held a video meeting with him on October 13. [ 4 , 5 , 9 ]
Still unclear
- Whether a Korea-US currency swap was raised at the meeting. Only the Korea Economic Daily reported that the swap issue was not discussed, citing unnamed accounts.
- Whether investment in the US and foreign exchange stability were discussed. The Korea Economic Daily cited observers expecting these topics and reported that FX policy coordination was discussed; no other outlet reported this.
- Who else attended on the US side. Only Asia Economy reported that Erin Brown (에린 브라운), US Treasury under secretary for international affairs, attended.
- Why Scott Bessent was absent. Only Dong-A Ilbo gave a reason, saying he skipped the annual meetings because of domestic commitments.
What local media are saying
Timeline, local time
- The 2+2 meeting begins in Bangkok and lasts about 30 minutes, according to Dong-A Ilbo. [ 9 ]
- The won closes at 1,331.4 per dollar in Seoul, down 13.2 won, the Korea Economic Daily reports. [ 6 ]
- Maeil Business reports the meeting. [ 2 ]
- Yonhap and Newsis report the first 2+2 meeting. [ 3 , 4 ]
- The Korea Economic Daily reports the currency swap was not discussed. [ 6 ]