South Korea sees gains for its infrastructure firms from joining AIIB

South Korea sees gains for its infrastructure firms from joining AIIB

“What is important is not the date but whether we can see what we have been asking (China) guaranteed,” Finance Minister Taro Aso told reporters after a cabinet meeting on Friday.

China's President Xi Jinping poses for photos with guests at the Asian Infrastructure Investment Bank launch ceremony at the Great Hall of the People in Beijing

Aso reiterated Japan’s concerns relating to fair governance at the AIIB, establishment of the board of directors, debt sustainability and respect for social and environmental issues.

“Unless (China) clarifies these matters, which are not clear at all, Japan remains cautious,” he said.

Song at the South Korean finance ministry said some of the concerns among prospective members had recently been resolved, such as giving the board of directors the power to decide on investment projects, instead of the management.

The Wall Street Journal reported this week that China had proposed to forgo veto power at the AIIB to attract more countries to join the new bank.

Chinese foreign ministry spokeswoman Hua Chunying has however dismissed the notion that Beijing sought – or gave up – veto power as an “impossible proposition”.

Taiwan has also expressed interest in joining the AIIB, but has not so far been invited. “We should not look on from the sides, we should be actively involved,” President Ma Ying-jeou said in an interview on Thursday with a local media group, according to the presidential office.

China considers Taiwan as a renegade province and has opposed its membership in international organizations if it confers any sovereignty on the island.

(Additional reporting by Yeawon Choi in SEOUL, J.R. Wu and Faith Hung in TAIPEI, Ben Blanchard in BEIJING and Tetsushi Kajimoto in TOKYO;

Source:http://ca.reuters.com/article/businessNews/idCAKBN0MN08L20150327?pageNumber=2&virtualBrandChannel=0

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