Lee warns against protectionism ahead of G20

By Lee Tae-hoon

President Lee Myung-bak expressed concern Friday that protectionism may rise and deal a blow to the Korean economy, as well as the global economy.

“I’m worried that a conflict of interests between countries may lead to protectionism,” President Lee said in a luncheon with managing editors of newspapers and broadcasters at Cheong Wa Dae.

“This is a problem that concerns us, as well as the world.”

However, he said Korea will likely be hit the hardest by an escalation of trade barriers as the fourth largest economy in Asia heavily depends on exports.

President Lee noted that Korea will host the G20 summit at a time when a growing number of countries are taking a different approach to finding solutions to their economic problems.

The G20 Seoul Summit is slated for Nov. 11 and 12.

“Korea will host the G20 at a difficult time,” he said. “It has become a much more important event than first thought as international cooperation has become of greater importance.”

The international tension on economic policies is expected to reach a climax at the summit as a general meeting of the International Monetary Fund (IMF) recently came to a close without any clear solutions to thorny issues, such as the reform of IMF governance and exchange rate rebalancing.

“To be honest, I’m very anxious,” President Lee said, noting that Korea will be judged based on the outcome of the summit. “Korea’s national prestige may soar or plummet.”

Lee said he wants the world to remember the G20 Seoul Summit for decades and praise Korea’s role in laying out the foundation for sustainable growth of the global economy.