S. Korea, Brazil to hold talks to boost economic cooperation

The finance ministers from South Korea and Brazil will hold a meeting to discuss ways to boost their bilateral and global economic cooperation amid worries that the European fiscal debt problems could spread to the rest of the world, Seoul officials said Tuesday. The meeting, the second of its kind, will be held in Brasilia on Tuesday between Finance Minister Bahk Jae-wan and his Brazilian counterpart Guido Mantega, according to the ministry officials. "Brazil is fast emerging not just in its economic growth but also in its status on the international stage," the ministry said in a press release. "With the second round of the talks, we expect to open a regular consultation channel and strengthen close economic cooperation ties with the country", according to South Korea''s (Yonhap) news agency. The meeting is composed of three sessions during which the two will exchange views mostly on the latest local and global economic situations and how to boost their bilateral and global economic cooperation in the face of the current crisis stemming from Europe, the ministry said. In a prepared opening speech emailed to reporters before the meeting, Finance Minister Bahk emphasized that regaining trust through global cooperation is highly important to stem the financial turmoil in Europe from spreading to the rest of the world. "We are facing a time when trust in financial markets has become more important than ever," he said. "In the current economy, a fire next door can easily burn down our own house. Right now, the small sparks that started in the European economy have spread like wildfire across the globe. "We cannot relax until we have taken a fire extinguisher and completely put the fire out. This wildfire can only be tamed through international cooperation in the name of trust," he added. The talks are the second of their kind since the two heads of state agreed in 2008 to open a high-level consultation channel. The first finance ministerial meeting was held in South Korea last year. The meeting comes as South Korea has been seeking to expand its economic ties with Brazil as the South American country is fast emerging as a global economic powerhouse. Last year, the two nation''s trade came to US$12.46 billion. South Korea''s investment in Brazil was $1.05 billion during the same year, accounting for 53.5 percent of its total foreign direct investment in Central and South American countries, according to the ministry.