14-07-2025
Korea mulls formal role for secretive F4 policy talks
South Korea is poised to transform its clandestine macroeconomic and financial meetings involving top policymakers into a transparent, institutionalized body, sparking debates over the potential implications for decision-making agility and crisis response capabilities.
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.
