Korea mulls formal role for secretive F4 policy talks
According to sources on Monday, the government, through State Affairs Planning Committee, is proposing to establish a formal legal framework that would explicitly define the purpose, roles and responsibilities of the so-called F4 meeting, a weekly gathering of the heads of the Ministry of Economy and Finance, the Bank of Korea, the Financial Supervisory Service and the Financial Services Commission.
The F4 meeting was launched by former Finance Minister Choo Kyung-ho in 2022, but similar forums have been operating for several decades. Historically, governments have maintained confidentiality over such discussions, partly to prevent sensitive issues from becoming public and provoking market upheaval.
The move is designed to increase transparency by providing public access to agenda items and meeting minutes, positioning the body as a central coordinating authority across various economic policy domains.
Currently, F4 meetings are conducted without publicly disclosing schedules, topics or contents.
The meeting has been playing a crucial role as an informal but essential crisis management and coordination mechanism.
Its significance lies in its ability to rapidly respond to market turbulence and systemic risks. Past instances include its handling of liquidity concerns during the Lego Land crisis in 2018 and the swift response to market shocks during the fallout from the Silicon Valley Bank collapse.
The forum also serves as a platform for early policy discussions, helping policymakers reach consensus before implementing measures that could impact markets.
In December, amid a sharp depreciation of the won and a significant decline in the stock market following former President Yoon Suk Yeol's declaration of martial law, officials convened a series of F4 meetings to deliver reassuring messages to international markets and stabilize sentiment during a period of heightened volatility.
The government has also come under scrutiny amid claims that, immediately after Yoon's emergency declaration, F4 meetings discussed follow-up measures related to the martial law order. This suspicion has fueled calls for giving the forum formal legal status to enhance transparency and oversight.
Experts suggest that while making these discussions public could democratize policymaking and bolster legitimacy, it might also hinder the government's ability to act decisively in volatile economic conditions.
While laws and policies often become clearer during implementation, revealing draft plans still in discussion to the markets and media could lead to adverse reactions, according to Jun Kwang-woo, chairman of the Institute for Global Economics. He also participated in F4-like meetings during his tenure as the first chairman of the country's Financial Services Commission from 2008 to 2009.
'Premature disclosure of deliberations on sensitive issues could ignite unnecessary speculation and market instability,' he said.
Such a move could improve coordination, but it must be carefully managed to avoid undermining policy flexibility.
'If the F4 meeting is elevated to a central macro-financial overseeing body, communication between the related government agencies will be strengthened, helping to prevent policy discrepancies,' said Joo Won, head of the Economic Research Division at the Hyundai Research Institute.
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'I'd like to single out the Moon-Abe period as an important turning point because, no matter how much Korea-Japan relations were tied up in historical issues, there had always been certain lines neither side would cross,' Lim said, when asked about the most important turning point in bilateral relations over the 80 years since liberation and its significance. 'During the Moon and Abe administrations, however, those lines collapsed, sending the relationship into a downward spiral.' Tensions peaked in 2019 when South Korea's Supreme Court ordered Japanese companies to compensate the Korean victims of wartime forced labor. In response, the Abe administration restricted exports of three key semiconductor materials in July and removed South Korea from its list of preferred trading partners the following month. These actions led to a nationwide boycott in South Korea of Japanese goods and travel to Japan. That November, the Moon administration conditionally delayed its decision to end the GSOMIA military intelligence-sharing pact with Japan, effectively suspending its operation, while a radar lock-on dispute the following month further strained defense cooperation and exchanges between the two countries. This period also saw growing economic security concerns, driven by the first Trump administration's 'America First' policies and supply chain disruptions caused by the pandemic. 'Yet, paradoxically, this period also made us realize anew that Korea and Japan are bound together — economically, socially and culturally — in ways that are profoundly close,' Lim said. 'Never again should historical issues be allowed to damage cooperation not only in the economic sphere, but also in the realm of security.' Time for a new joint declaration For many in Seoul, the benchmark for a diplomatic reset remains the 1998 Kim Dae-jung-Obuchi Declaration, formally titled the Korea-Japan Joint Declaration: A New Partnership Toward the Twenty-first Century. In the declaration, Seoul and Tokyo set out a roadmap for future-oriented cooperation, including principles for collaboration across sectors such as security, the economy, policy, people-to-people and cultural exchanges and global issues. It also included Japanese Prime Minister Keizo Obuchi's expression of 'deep remorse and heartfelt apology' for Korea's colonization. The time has come to forge a new joint declaration. 'The international situation in 1998, when it was created, is completely different from what it is now, so we need a vision for Korea-Japan cooperation that reflects the current circumstances,' she said. 'Among the action plans for 43 items included (in the declaration), there are some that were relevant then and still are today, but there are also topics that are no longer timely. So, we need an updated version that addresses how to deal with those aspects.' Choi cites the 'Trump risk' as a clear example. 'It's not just because of the Trump administration, but because the international environment has become very unstable,' Choi said. 'For instance, if US involvement is reduced, how will regional security be maintained? We need to discuss how Korea and Japan can cooperate in that context.' Choi noted that a forward-looking approach should extend beyond economic and historical matters that were absent or only lightly addressed in the 1998 declaration. For instance, the 1998 declaration did not mention supply chains, AI or 5G, which are now central to both bilateral and global agendas. The joint declaration also left out specific historical topics, like the memorial service at the Sado gold mine, where Koreans were subjected to forced labor during World War II. Choi underscored that these issues should be included in a new framework, along with plans for handling future challenges. Lee concurred on the need to forge a new joint declaration in light of the shift in the balance between Seoul and Tokyo since then. 'At that time, in 1998, we were still — I wouldn't say far behind Japan, but in a somewhat lower position — and that perspective was reflected in much of the content,' Lee said. 'If that declaration was made in the context of Japan helping Korea, today the two countries are truly on an equal footing. In this context, we need a new version of the Korea-Japan Partnership Declaration that considers how the two countries, as equals, should cooperate.' Seizing the Ishiba opportunity Nam Ki-jeong, professor at the Institute for Japanese Studies at Seoul National University, views the current Ishiba administration in Tokyo as part of a rare alignment of circumstances that could offer the Lee administration a valuable opening. 'The Ishiba Cabinet has the potential to last a bit longer,' he said. 'While it's possible that it could end in a very short period, if we carefully devise and execute a strategy in coordination with the Ishiba Cabinet and those around it, we can advance Korea-Japan relations during the time that the Cabinet is in place.' Even if the political situation changes, Nam argues, the groundwork laid now could bring long-term benefits. If the ruling Liberal Democratic Party were to shift further to the right after the Ishiba Cabinet, for example, under figures like former economic security minister Sanae Takaichi, the existing groundwork could help keep a more hardline government in check. On the other hand, if the LDP were to hold longer to the relatively liberal approach established by Ishiba, Seoul and Tokyo could have a better chance of improving their relationship beyond its current state. 'Right now, Korea-Japan relations enjoy an exceptionally favorable combination of administrations. When such a combination emerges, we must think on our side about how to make the most of the opportunity,' Nam said. 'Producing tangible results while Ishiba is in office is crucial at this moment.'
