ADB chief says no position on S. Korea's interest on China-led bank

Asian Development Bank (ADB) President Takehiko Nakao said Thursday that he does not have a stance on South Korea's interest in joining China's push to set up a regional bank to fund infrastructure projects in Asia, but cautioned that the proposed China-led bank should meet international standards.

   Nakao made the comments in response to remarks made on Wednesday by South Korean Finance Minister Choi Kyung-hwan in Beijing that Seoul is willing to join the China-led Asia Infrastructure Investment Bank (AIIB) if certain conditions are met.

   China is pushing to establish the AIIB as a counterbalance to the ADB led by the United States and Japan and has asked countries in the region, including South Korea, to join the drive. The U.S. has been negative about the Chinese plan.

   "About the interest of the Korean government joining the AIIB, we don't have any positions," Nakao told reporters during a press briefing at the ADB Resident Mission in Beijing.

   "We don't prevent from or encourage member countries to join the AIIB," Nakao said. "It's a decision by the country."

   However, Nakao said the governance of the China-proposed bank should meet international standards, saying that little has been known about the AIIB such as the structure of its board and how an investment decision would be made. 

   "If a new bank is designed, it should adhere to international standards," Nakao said.

   "I understand the concerns and questions about the structure of the AIIB," he said, but reiterated the ADB's stance about the AIIB.

"If a new bank is established well, we are prepared to consider our collaboration and cooperation (with the AIIB)."

   On the sidelines of this week's APEC finance ministers' meeting in Beijing, Nakao said he held a "good discussion" with Choi about cooperation between South Korea and the ADB.

   Choi also held a bilateral meeting with China's finance minister, Lou Jiwei, this week and asked the Chinese side to improve the governance structure of the AIIB, Choi told reporters on the sidelines of the Wednesday event.

   "Rationality as an international financial institution is our precondition," Choi said. "If such issues are resolved, there will be no reason for us not to join the AIIB," Choi said.

   China is expected to sign preliminary agreements on Friday with countries that have expressed interest in joining the AIIB.

   In Beijing on Wednesday, Choi said South Korea has yet to decide on whether to sign a preliminary agreement with China about the AIIB this week.

   "Even if we don't participate in the signing ceremony of a memorandum of understanding with China this week, it would not mean that we will not join the AIIB," Choi said.

   Choi said South Korea could join the AIIB next year if China can compromise on pending issues. (Yonhap)