Good morning, fellow Koreans,

The G20 Seoul Summit is just 10 days away. It is the premier global economic forum that will help reorient the world economy in the wake of the global financial crisis. As The Wall Street Journal put it, the G20 is now serving as a board of directors for the world economy.

Up to now, the G20 summit has only been held in the G7 countries, including the United States, the United Kingdom and Canada. The upcoming Seoul Summit is the first to be held in a non-advanced country and in an Asian nation at that. A new avenue has been paved for emerging economies to host this global event. It is a sea change on a global scale, given the role and significance of the G20 summit.

What is more meaningful is that the Republic of Korea will chair the Summit and carry out its historic mandate of contributing to the sustainable growth and prosperity of the world. We are charged with the hefty responsibility of coordinating agenda items that will determine the global economy and helping build a consensus on international issues.

We are now living in an era where a crisis in one country may develop into a global crisis in no time. The most crucial items on the agenda of the Seoul Summit can be boiled down to four issues. The first is the currency exchange-rate issue. I am very pleased with the fact we got a green light for the success of the Seoul Summit at the G20 Finance Ministers and Central Bank Governors Meeting held in Gyeongju last month.

The Gyeongju meeting came up with an agreement for an exchange rate system determined by market forces even though before this all countries around the world have held a negative view of the possibility of progress on the exchange rate issue. Before the meeting, it was expected that reaching an agreement on the issue would be tough because of the sharply divergent interests of the major powers. The meeting, however, was able to produce fruitful results thanks to a shared recognition that international cooperation is critical if the world economy, now on the road to recovery, is to have more balanced and sustained growth.

The second issue on the agenda item is to establish global financial safety nets that can more effectively protect against any possible economic crisis. When we were hit by the foreign exchange crisis in 1998, some 20,000 companies went under and more than a million people were left out of work. We learned a valuable lesson from that experience. That is that we need to install a solid global financial safety net through international cooperation to stave off crisis.

The third issue is reform of international financial institutions like the International Monetary Fund. The IMF has been operated mainly by advanced nations that carry heavy influence. However, with the increasing influence of newly emerging economies, including the Republic of Korea, China, India and Brazil, they now have to be given a say in proportion to their economic weight and capabilities. This is a highly controversial issue that could evolve into conflict since the interests of many nations are at stake. Notwithstanding, the finance ministers and central bank governors who convened in Gyeongju this time were finally able to reach an agreement thanks to Korea’s all-out efforts to arbitrate among them and persuade them.

The agreement to establish global financial safety nets and pursue reforms of the international financial organizations constitutes a truly meaningful achievement. When the foreign exchange crisis hit Korea in 1998, the nation had no alternative but to resort to assistance from the IMF, but also had to endure the somewhat excessive conditions attached.

The fourth issue is the development agenda, which is aimed at helping promote economic growth in developing nations so they can emerge out of poverty. Based on our own development experiences, Korea proposed that the assistance that has so far been centered on aid be replaced with policies aimed at strengthening the foundation for growth. To put it another away, instead of giving them a fish, the international community has to work together to teach them how to fish. Through these efforts, it would become possible to establish a fair global community and economic order.

Growth has been very dynamic in many emerging market economies, and the growth of these nations will make huge contributions to the progress of the global economy. Many developing nations, including those on the African continent, are welcoming the development agenda and pinning high expectations on it. With regard to the Korea’s leading efforts on this issue, World Bank President Robert B. Zoellic gave a high evaluation to Korea, saying that it has the necessary credentials to be named a leading global economy.

Prior to the Gyeongju meeting, I felt a strong sense of urgency. I thought that without an agreement in Gyeongju, it would be difficult to achieve success at the Seoul Summit. For this reason, I poured all my energy and efforts into seeking cooperation from the United States, China and the EU nations, including Germany, and coordinating all their opinions.

Out of such a feeling of urgency and to defuse tensions in the conference hall, I told the representatives half in jest that if the meeting failed to produce an agreement, all transportation back home would be blocked. Many representatives and foreign media organizations touted the Gyeongju meeting, adding that it has achieved important, better-than-expected headway and that the achievement is historic. 

However, there are many other tasks that have yet to be dealt with. The Seoul Summit is entrusted with the task of preparing a framework for implementing existing agreements, while trying to come to a consensus on remaining agenda items. I have high expectations for the expected outcome of the Summit as the international community shares the need for mutual coordination, and Korea is doing all it can to that end.

Fellow citizens,

Our country has overcome two major economic crises. We rose to the ranks of the leading economies in the world, acting as one of the chairs of the G20, the most important consultative body on the global economy.

As we can see in the case of the signing of an FTA with the EU, the international community acknowledges Korea as a country that assures universal values and has established appropriate systems, including human rights, democracy, a market economy and the rule of law. The world recognizes our ability to set global agendas as well as our leadership in arranging and conducting international conferences.

When the world was faced with the latest global economic crisis, Korea was the first to strongly advocate prevention of the proliferation of protectionism. Eventually, the international community was able to arrange a system through which protectionist measures were suppressed. When the crisis started, people compared it to the Great Depression of the 1930s. But, the international community was able to find a breakthrough through concerted efforts.

The G20 Seoul Summit symbolizes the Republic’s elevation to a leadership position in the new international order. The world is watching every word we say and every action we take. Our responsibility has increased that much.

The monetary value of hosting the G20 Summit is estimated at 30 trillion won, and the publicity effect four times greater than that of the FIFA World Cup. But what is more important than the monetary benefit is the heightened self-esteem of the Korean people and the prestige of the Republic. This is the fruit of our sweat and blood, and we may well be proud of ourselves.

Wise people and nations do not miss opportunities. The Korean nation has a precious opportunity right now. We have to turn this historic occasion into a valuable asset that will go down generation after generation, not to mention its benefit for our own time.

I ask for your warm support in this endeavor.

Thank you very much.