Republic of Korea Offers Success Story for Rest of Asia, ADB President Tells Korea Day Seminar

JEJU, REPUBLIC OF KOREA (14 May 2004) - The Republic of Korea represents a remarkable success story that offers lessons for the rest of Asia, ADB President Tadao Chino told the opening of a Korea Day seminar in Jeju today.

Speaking at the Korea Day seminar, being held on the eve of the opening of ADB's 37th Annual Meeting of the Board of Governors in Jeju island, Mr. Chino said Korea's economy had transformed from one that was agriculture-based, with per capita GDP below $100 in the early 1960s, to among the most advanced economies in the world.

"After the Asian Financial Crisis struck in 1997, Korea recovered quickly thanks to strong structural reforms, especially in the financial and corporate sectors," he said. "Now building on its success to-date, it strides to develop its economy further."

The seminar presented an excellent opportunity not only to assess the factors behind Korea's development success, but discuss the challenges facing the country and the rest of Asia in striving for "dynamic and sustainable growth," Mr. Chino added.

Lee Hun-Jai, the Korean Deputy Prime Minister and Minister of Finance and Economy told the seminar that as liberalization of trade and financial flows had greatly reduced the meaning of borders, the world will sink or swim together on the tide of the global business cycle.

"More than ever before, the world's policy makers must be appreciative of this symbiotic relationship when contemplating their policy actions," said Mr. Lee, who is Chairman of the Board of Governors of ADB.

"In this symbiotic era, greater economic cooperation among Asian countries will be essential. In this context, it is quite encouraging to see that Asian countries are making some progress in the area of financial cooperation."

Mr. Lee added that without a clear vision for long-term growth, high economic performance in Asia will not be sustainable.

"We are placing the highest priority on building an advanced market economy, where efficiency, transparency, and accountability reinforce one another," he said.

"The role of the government will be to ensure free and fair competition among market participants."

The Korea Day Seminar, with the theme of "Dynamic and Sustainable Growth in Korea and Asia," brought together distinguished participants in six sessions from academia, the private sector and international agencies.

"Much has changed in Asia and the Pacific since I first started work on the establishment of ADB 40 years ago," Mr. Chino remarked.

"One of the most impressive developments is that the Republic of Korea, one of our founding members and one of the first borrowing countries, has become a donor … I hope our partnership will now enter a new phase - as we work together to assist other countries in the Asia and Pacific region develop their economies and reduce poverty."