message from the chairman

OFFICIAL EVENTS AND SCHEDULE

SEOUL G20 AGENDA(4)

For the G20, the crisis has called into question the effectiveness of existing international financial institutions. Most recently, during their June 2010 meeting in Busan, Korea, the G20 Finance Ministers and Central Bank Governors reaffirmed the urgency of IMF reform and called for the reform to be completed by the November Seoul Summit.

Those reforms entail a shift in quota share to dynamic emerging market and developing countries of at least 5% from over-represented to under-represented countries. In addition, G20 leaders committed to addressing the issue of the size of any increase in quotas, size and composition of the Executive Board, ways to enhance the Board’s effectiveness, the Fund Governor's involvement in the strategic oversight of the IMF, staff diversity, and a merit-based selection of heads and senior leadership of all IFIs.

Going forward, the IMF is expected to strengthen its ability to provide even-handed, candid and independent surveillance of the risks facing the global economy and the international financial system. Moreover, in collaboration with the FSB, it is expected to provide advance warning of macroeconomic and financial risks and offer appropriate recommendations to head them off.

Meanwhile, the World Bank has already reached an agreement on shifting 3.13% of voting power to developing and transition countries, delivering on its commitment to complete the agreement by April of this year.

SEOUL G20 AGENDA(3)

The G20 leaders have committed to strengthening the financial 

regulatory system both to sustain global growth and to prevent 

future crises. These efforts toward financial sector reform are 

largely geared toward restoring the industry’s integrity, transparency 

and accountability, thereby allowing it to regain the confidence of 

the general public.

According to the timeline created at the Pittsburgh Summit, more 

stringent international rules regarding bank capital and liquidity 

requirements will be created by the end of 2010. They will then 

be phased in as financial conditions improve and economic 

recovery is assured, with the aim of implementation by the end 

of 2012. At the June 2010 Busan meeting, the G20 finance ministers 

and central bank governors called on the BCBS(Basel Committee 

on Banking Supervision) to propose these rules by the November

 2010 Seoul Summit. Further, all major financial centers are expected

 to adopt the Basel II framework, recommendations on international

 standards regarding capital requirements for banks, by 2011.

In addition, the G20 tasked the Financial Stability Board (FSB) to

 develop capital and liquidity standards for systemically important

 financial institutions (SIFI) in order to prevent excessive risk taking. 

The leaders also asked the FSB to suggest appropriate resolution 

tools to address the potential failures of SIFIs.

Finally, at the Pittsburgh Summit, the G20 leaders tasked the IMF 

to suggest options for the financial sector to make a fair and

 substantial contribution toward paying for burdens associated 

with government intervention to repair the banking system. 

The IMF will submit a final report to the leaders on the various

 options at the June Summit.

SEOUL G20 AGENDA(2)

At the Pittsburgh Summit, the G20 leaders launched

 the Framework for Strong, Sustainable, and Balanced 

Growth to strengthen international cooperation in 

the interest of future economic growth and stability.

The leaders of the G20 tasked the IMF to support a 

mutual assessment process for the Framework, together 

with other relevant international organizations with 

expertise on development, finance, labor market, and trade.

Going forward, the leaders will agree on a set of policy

 recommendations when they meet in Seoul in November, 

based on the basket of policy options agreed

 upon at the June 2010 Summit.

SEOUL G20 AGENDA(1)

When the G20 leaders come together in Seoul in November, 

their primary concern will be ensuring that the economic recovery is 

well underway, that future crises can be averted, and that the G20 

maintains its place at the center of global governance by delivering 

on previously made commitments. Toward those ends, the G20 Se-

oul Summit will focus first on following up on previous G20 agree-

ments and mandates within the established timeframe. 

Those commitments include : maintaining economic support 

measures until recovery is fully assured; ensuring strong, sustain-

able, and balanced global growth; building a stronger international 

financial regulatory system; and modernizing the international 

financial institutions.

The world economy continues to recover faster than anticipated, 

although at an uneven pace. Nonetheless, the recent volatility 

in financial markets reminds us that significant challenges remain.

The G20 Finance Ministers and Central Bank Governors who met 

in Busan from June 4 to 5, 2010, affirmed that the G20 stands 

ready to safeguard the recovery and strengthen prospects 

for growth and jobs with well-coordinated economic policies. 

They further pointed out that recent events have highlighted 

the need to ensure fiscal sustainability through credible and 

growth-friendly measures that are tailored to individual countries.

In this context, the G20 leaders agreed that countries with 

serious fiscal challenges should accelerate the pace of 

consolidation, while encouraging countries to expand domestic s

ources of growth within their capacity and maintain macroeconomic 

stability. They also reiterated the importance of structural reforms, 

development policies, and ongoing efforts to resist protectionism.

G 20

Twenty world leaders will come together in Seoul this November
to discuss the state of the global economy as it emerges from 
the financial crisis. Together, they will take the necessary steps 
to reduce market volatility and move past the crisis, creating
sustainable growth going forward.

The fall meeting will be the fifth leaders summit and the first
in an emerging country, reflecting shifts in the global economic
balance and a growing understanding of the interdependence of
countries and regions in the international financial system.

In addition to heads of government from the twenty member countries, central bankers and finance ministers, the heads of key international institutions, including the United Nations, the International Monetary Fund, the World Bank and the Financial Stability Board, will participate in the meetings, November 11-12. Member countries include the G8 developed economies along with emerging economies such as the Republic of Korea. Together, the members of the G20 represent over 85% of the world economy.

Summits held to date – in Washington D.C., Pittsburgh, and London - the G20 averted economic catastrophe. In Pittsburgh, the G20 leaders agreed that, going forward, the G20 would be the premier forum for international economic cooperation, ushering in a new system of global economic governance. In Seoul this November, the leaders will take that mandate forward, paving the way for future sustainable and balanced growth.

Within the larger agenda, the leaders will continue to work to build a lasting system of cooperation – a framework - and to reform international financial organizations and financial regulations. At the Seoul Summit, the G20 will build on past agreements, while introducing new agenda items that support the same fundamental goals. Specifically, Korea will support discussion of a system of global financial safety nets and plans to reduce global poverty and the development gap.

The Republic of Korea is delighted to host this unique event, and to offer lessons learned from its recent past in pursuit of future prosperity.