October 28, 2010 11:58
Korea's share in the International Monetary Fund's capital will soar 2.5-fold from the current US$5.3 billion to $13.3 billion.
The IMF share refers to the money IMF member states put into the fund according to their stake. The more a member state contributes, the more influence it has in the IMF's decision-making process on matters such as emergency bailout plans for countries facing bankruptcy.
A Ministry of Strategy and Finance official on Wednesday said the G20 Finance Ministers and Central Bank Governors' Meeting in Gyeongju last week "decided to increase Korea's stake in the IMF from 1.41 percent to 1.8 percent, as well as increase the entire IMF capital by 100 percent."
"As a member of the international community, the country will contribute more to preventing crises," he added.
With the agreement, Korea climbed two notches from 18th to 16th place in terms of stakes in the IMF. As member states need to pay only 25 percent of their share in cash, Korea's actual contribution to the IMF will increase from $1.3 billion to $3.3 billion. With the contribution to be made with foreign reserves held by the Bank of Korea, which stood at $289.8 billion as of late September, it will not lead to a greater tax burden.
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