§ Lord Kennetasked Her Majesty's Government:
What view the International Monetary Fund is taking of the dollar costs to the South Korean Government of the 35,000 United States forces operating in South Korea at South Korean expense. [HL159]
§ Lord McIntosh of HaringeyThe International Monetary Fund takes no official position on the cost to the Government of Korea of US forces operating in Korea, and it would not be appropriate for the Government to comment on this.
The Government of Korea has agreed an overall target for the stance of fiscal policy in the context of its programme of adjustment with the IMF. This target included an estimate of the significant additional budgetary costs associated with reforming Korea's financial sector, with offsetting expenditure reductions in other areas to ensure an appropriate budgetary position. The decision on where spending adjustments should be made was considered a matter for the Government of Korea.