Jin calls for increased NIC voting power at IMF

Minister of Finance and Economy Jin Nyum said Sunday that the quota of International Monetary Fund (IMF) voting rights for newly industrializing countries (NICs), including Korea, should be further increased in future discussions on reforming the international financing structure.

Delivering a keynote speech at the third Asia Europe Meeting (ASEM) of finance ministers in Kobe, Japan, Minister Jin said that the current IMF voting system fails to fully reflect the consolidated economic power of NICs.

To prevent a reoccurrence of the foreign exchange crisis, he said, the construction of an Early Warning System (EWS) and surveillance system among Asia-Pacific countries is needed.

Noting that general financial institutions, including mutual funds, investment banks and hedge funds (short-term international speculative capital), are showing speculative and short-term investment patterns, he stressed that proper countermeasures should be prepared.

Kwon Soon-Hwal shkwon@donga.com