South Korean Finance Minister Koo Yun-cheol on Sunday, 4 May 2025, called for stronger regional cooperation to counter mounting economic uncertainty stemming from the U.S.-Israeli war against Iran, the South Korean finance ministry said. Koo made the appeal at the 29th ASEAN+3 Finance Ministers and Central Bank Governors Meeting held in Samarkand, Uzbekistan, according to the ministry, citing Yonhap news agency.

Key Developments at the Samarkand Meeting

ASEAN+3 brings together the ten member states of the Association of Southeast Asian Nations (ASEAN) and its three Northeast Asian dialogue partners — South Korea, Japan, and China. Speaking at the forum, Koo warned that the ongoing Middle East conflict had deepened regional economic vulnerability. "The Middle East war has further expanded regional economic uncertainty," he said. "Against this backdrop, ASEAN+3 cooperation, which has served as a buttress during a regional crisis, is becoming increasingly important."

Impact on South Korea's Economy

Koo highlighted that the Iran war poses a direct threat to the South Korean economy, and outlined steps the government has taken to shore up growth. Central among these is the creation of a 26.2 trillion-won (approximately US$17.7 billion) extra budget, designed to cushion the domestic economy against external shocks. This comes amid broader global anxiety over energy supply disruptions and trade route instability linked to the Middle East conflict.

South Korea-China-Japan Trilateral Talks

Separately, Koo chaired a trilateral meeting of finance ministers and central bank governors from South Korea, China, and Japan on the sidelines of the ASEAN+3 summit. He reportedly called for intensified cooperation among the three nations to address downside economic risks arising from the Iran war. Notably, this trilateral engagement signals a rare alignment of the three Northeast Asian economies on a shared external risk — a dynamic that analysts say could prove consequential for regional financial architecture.

South Korean National Appointed to World Bank Role

In a separate announcement, the South Korean finance ministry confirmed that Min Jee-nah, the former head of credit for state-owned enterprises and reinsurance at the Multilateral Investment Guarantee Agency (MIGA), has been appointed as the new Director of Market and Counterparty Risk at the World Bank Group (WBG). She is set to assume the role starting next month. With this appointment, Min becomes the fourth South Korean national to hold a director-level position at the global financial institution — a milestone the ministry highlighted as a mark of growing South Korean influence in multilateral finance.

What to Watch Next

With geopolitical tensions in the Middle East showing little sign of abating, the ASEAN+3 framework is likely to face pressure to operationalise its crisis-response mechanisms more concretely. South Korea's push for a coordinated regional response — backed by a substantial domestic stimulus package — signals that Seoul is positioning itself as a proactive voice in managing the economic fallout from the Iran war across Asia.