Azerbaijan and South Korea are stepping up cooperation on digital public finance management, with the two countries launching a project to develop modern systems for financial control and treasury operations in Azerbaijan.

The Azerbaijan Digital Finance Center and Korea Fiscal Information Service (KFIS) signed a memorandum of understanding covering the design of Azerbaijan’s digital financial control and treasury systems, as well as the preparation of a roadmap for their implementation, The Caspian Post reports via Azerbaijan’s Ministry of Finance.

The agreement was signed during a meeting between Azerbaijani Deputy Finance Minister Himalay Mamishov and a KFIS delegation.

The sides discussed Azerbaijan’s ongoing reforms to digitally transform public financial management, including the study of South Korea’s experience and the development of new digital financial control and treasury systems.

Mamishov described the digitalization of public finance management as a key priority of Azerbaijan’s institutional reforms.

He stressed the importance of continued cooperation with South Korea to exchange knowledge and technology, strengthen institutional capacity and build a modern digital model for public finance management.

The next stage of the project will involve a comprehensive assessment of Azerbaijan’s existing public financial management system.

The initiative will also focus on strengthening internal financial controls, integrating information systems, developing fiscal risk analysis models and designing a digital treasury system.

A phased roadmap will then be prepared to guide the implementation of the new system.

Future cooperation will also explore the use of artificial intelligence, data-driven decision-making, budget forecasting and the early identification of fiscal risks.

The latest agreement builds on previous cooperation between Azerbaijan and South Korea in digital public finance.

In April, the Azerbaijani Finance Ministry's delegation visited South Korea to study the country’s dBrain+ public financial management system.

Earlier, Azerbaijani Finance Minister Sahil Babayev and KFIS President Yoon Seok-Ho signed a memorandum on cooperation in the digitalization of public finances.