In the past 20 years, the annual meeting of the International Finance Forum (IFF) has been held in Beijing and Guangzhou’s Nansha district. This year, for the first time, we held the meeting in Hong Kong, one of the world’s financial hubs. Indeed, Hong Kong currently ranks third among global financial centers and leads the Asia-Pacific region in areas such as business environment, human capital and infrastructure.

Hong Kong's financial sector, including investment management and financial technology, has seen significant growth in recent years, further enhancing its global competitiveness. I distinctly remember that the IFF held a high-level meeting with the Monetary Authority in Hong Kong last May. It was a memorable event, as it was the first offline meeting organized by the IFF in more than three years.

In September 2024, the United Nations held an important conference in New York called the Summit of the Future. A key topic discussed in the "Covenant for the Future" adopted at the meeting was that the current multilateral system is under unprecedented pressure. In the process of global governance transformation, the reform of the international financial architecture must be accelerated. Multilateralism needs to drive global change and play a key role in shaping the international economic landscape. Over the past few decades, multilateralism has provided countries with a framework for cooperation, trade, financing and development, driving the global economy to unprecedented heights.

Indeed, multilateralism remains crucial for the entire world. Since the end of World War II, multilateral institutions such as the UN and the World Trade Organization have played an important role in shaping global trade rules. Through multilateralism, trade barriers have been lowered, investment flows have increased, and nations have been able to focus on industries in which they have comparative advantages, thereby achieving an overall increase in productivity and an improvement in people’s living standards.

Multilateralism has successfully promoted economic growth and global cooperation, but it has faced significant challenges in recent years. We are witnessing increasing geoeconomic fragmentation, with economic decisions increasingly driven by political and security considerations. If this trend is not effectively curbed, it will undermine the foundation of multilateralism based on the principles of open, rules-based trade and international cooperation. Despite the many challenges, global cooperation remains a strong necessity because the benefits of global cooperation far outweigh the costs of fragmentation.

Against this backdrop, the call for comprehensive international financial reform is more urgent than ever. In today’s multipolar world, the existing global financial architecture, established through the Bretton Woods Agreement, is facing increasing challenges in addressing the complexities of the modern global economy. Institutions such as the IMF and the World Bank are now seen as outdated due to their governance structures, which fail to adequately represent emerging economies. Reforming these institutions to reflect changes in the global economic landscape is crucial to restoring their legitimacy and ensuring they effectively serve all countries around the world.

One of the most significant changes in the global financial order is the phenomenon of de-dollarization, driven by geopolitical changes and the desire of many economies to reduce their dependence on the US dollar. While de-dollarization reflects shifts in the global financial landscape, it also highlights the increasing fragmentation of the global economy and underscores the need for comprehensive reforms to promote a more inclusive and multipolar financial system. The key to balancing the interests of developed and emerging economies, while maintaining the competitiveness of traditional financial institutions, lies in adjusting voting rights and quotas. This would better reflect the changes in the global economic power structure. Without these reforms, the existing system may lose its ability to drive global cooperation and change.

Additionally, the growing burden of sovereign debt, especially the debt issues facing developing countries, must receive adequate attention. These countries are facing unsustainable debt levels, and external factors such as rising interest rates and currency fluctuations often exacerbate these problems. Likewise, strengthening the global financial safety net is crucial. Reforming the IMF's Special Drawing Rights and improving access to precautionary financial arrangements can provide a necessary buffer against global financial volatility.

Strengthening this safety net is critical to ensuring that countries, especially developing ones, can withstand economic shocks and maintain stability, particularly in an era of increasing fragmentation. If these measures are taken at the right time, global transformation will move in the direction of creating a better future for international cooperation.

(This article was adapted from the speech delivered by Han Seung-soo, co-chairman of the IFF and chairman of the Council of Presidents of the United Nations’ General Assembly, at the opening ceremony of the 21st Global Annual Meeting of the IFF on Nov. 23 and is authorized for publication in this column.)