By Min Zeng Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- South Korea's president urged the Group of 20 developed and emerging nations to set up at their next meeting a working group to discuss recommendations on various issues.
Lee Myung-bak made the suggestion Saturday during the first G20 summit on the economic and financial crisis in Washington. South Korea is expected to take over the presidency of the G20 after the U.K., which will take over the baton from current president Brazil.
Lee emphasized the agenda to reforming the international financial system, including realigning the functions of international institutions such as the International Monetary Fund, the Financial Stability Forum and the Bank for International Settlements.
He noted that South Korea successfully set up a consolidated financial supervisory agency to oversee banking, insurance and securities as part of the country's efforts to deal with the financial crisis of the late 1990s. That crisis hit South Korea, which had to turn to the IMF for a bailout, and other Asian nations.
Lee also cautioned against protectionism at a time of financial stress, warning that emerging economies will become the biggest victims of protectionism.
"I would like to propose that G20 countries make a 'standstill' declaration on trade and investment restrictions," he said. "The entire global community should redouble its efforts to bring the Doha Round of multilateral trade negotiations to an early, successful conclusion."
Turning to a dollar-funding shortage, which has plagued the nation over the past few months, Lee said ensuring sufficient liquidity in foreign currencies is vital. He urged other major economies, besides the U.S., to enter swap agreements with emerging economies.
South Korea recently secured a currency swap line with the Federal Reserve. In a meeting Friday night, finance ministers from South Korea, China and Japan vowed to strengthen cooperation in facing the crisis and also discussed the possibility of China and Japan extending a foreign exchange swap line to South Korea.
South Korea has suffered from a dollar shortage as foreign investors dumped won-denominated assets due to the ongoing financial and economic crisis, sending the won tumbling against the dollar.
-By Min Zeng, Dow Jones Newswires; 201-938-2096; min.zeng@dowjones.com
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(END) Dow Jones Newswires
November 15, 2008 17:53 ET (22:53 GMT)

Publié le 15 novembre 2008 Copyright © 2008 Dowjones