Facing US commitment uncertainties, Seoul forges ahead with alternative regional collaboration strategies
South Korea’s finance minister Choo Kyung-ho met with Asian Infrastructure Investment Bank (AIIB) President Jin Liqun to discuss ways of enhancing bilateral cooperation in finance and joint infrastructure projects, the Ministry of Economy and Finance announced. Choo highlighted the need for AIIB’s support for South Korean companies in investment projects and called for stronger ties between South Korean financial institutions and the AIIB. He also urged the bank to hire more South Korean staff.
Jin expressed hope for improved bilateral relations in the financial and infrastructure sectors, recognizing South Korea’s economic and technological prowess. South Korea has been a member state since the AIIB’s establishment in 2016, and it is its fifth-largest stakeholder. The bank, seen as a rival to U.S.-led lenders like the Asian Development Bank, now comprises 109 members.
Why It Matters
The meeting between Choo Kyung-ho and Jin Liqun is the latest sign indicating Seoul’s efforts to mend its ties with Beijing. This move comes amid strained relations following President Yoon Suk-yeol’s comments on Taiwan and the South China Sea, which had caused diplomatic ripples between South Korea and China. By engaging with the AIIB, a China-led initiative, Choo’s meeting is seen as the Yoon administration’s attempt to improve bilateral relations.
The meeting also highlights South Korea’s intent to diversify its economic partnerships beyond traditional allies, notably the U.S. This is particularly significant in the wake of the U.S.’s failure to conclude critical elements of its Indo-Pacific Economic Framework (IPEF) trade pillar due to opposition from Congressional Democrats. By actively engaging with the AIIB, South Korea is positioning itself to broaden its economic landscape, exploring opportunities that do not solely depend on its alliance with the U.S.
South Korea’s finance minister Choo Kyung-ho met with Asian Infrastructure Investment Bank (AIIB) President Jin Liqun to discuss ways of enhancing bilateral cooperation in finance and joint infrastructure projects, the Ministry of Economy and Finance announced. Choo highlighted the need for AIIB’s support for South Korean companies in investment projects and called for stronger ties between South Korean financial institutions and the AIIB. He also urged the bank to hire more South Korean staff.
Jin expressed hope for improved bilateral relations in the financial and infrastructure sectors, recognizing South Korea’s economic and technological prowess. South Korea has been a member state since the AIIB’s establishment in 2016, and it is its fifth-largest stakeholder. The bank, seen as a rival to U.S.-led lenders like the Asian Development Bank, now comprises 109 members.
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