Anchor: Finance Minister Yoo Il-ho met with IMF Managing Director Christine Lagarde on Friday on the sidelines of the Group of 20 Finance Ministers and Central Bank Governors meeting in Baden-Baden, Germany. At the meeting, Yoo defended Seoul's exchange rate policies, hoping for the IMF's positive assessment in its report, which will affect U.S. designation of currency manipulating countries.
Our Kim Soyon has more.

Report: The meeting was held largely because of a U.S. currency report due out next month.

The U.S. designates currency manipulators based on a number of factors, including the country's trade surplus with the U.S., its account balance and the scale of currency intervention. The IMF's assessment is a key reference for Washington's decision. 

Minister Yoo at the meeting explained that South Korea does not fit the description for the U.S.' currency manipulator, noting Seoul's 'smoothing operations' have only been for fine adjustments in both directions during exceptionally steep fluctuations.  

He also noted unique economic situations the export-driven economy is facing, saying that its current account surplus is in large part due to falling oil prices.

At the meeting, the two also agreed the IMF must strengthen the global financial safety net against rising uncertainties and volatility.

Lagarde said the IMF board will discuss the introduction of a preventive loan system. Yoo agreed, saying the system will help countries even with strong macro economic fundamentals to effectively cope with small-scale, temporary fluctuations. 
Kim Soyon, KBS World Radio News.