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President Moon Jae-in

“Our founding charter states that we’re supposed to invest in members. North Korea is not a member [that we can support]. If necessary, that will be determined during the general meeting,” said Jin Liqun, president of the Asia Infrastructure Investment Bank (AIIB), during a press conference held at the International Convention Center Jeju on June 17, when asked about investment in North Korea. Jin’s remarks suggest that the bank has cautiously decided not to consider investing in North Korea for now. This is believed to be a response to the plan for an inter-Korean railroad connection that President Moon Jae-in disclosed on June 16 during the opening ceremony of the 2017 AIIIB yearly conference.

The press conference was designed as an opportunity for Jin to explain the yearly conference, which took place from June 16 to 18. The AIIB was established in Jan. 2016 under the leadership of China with the goal of supporting infrastructure investment in Asia. During this conference, Argentina, Madagascar and Tonga became members of the bank, increasing the number of member states from the original 77 to 80. When asked what role the AIIB would play in China’s One Belt, One Road strategy (designed to be an overland and maritime Silk Road), Jin said, “The One Belt, One Road strategy is attracting interest from several member states, but certain criteria must be satisfied before a project can receive investment aid from the AIIB. The project in question must be financially feasible, environmentally friendly and welcomed by local residents.”

When reporters asked Jin for his position on NGOs‘ view that the AIIB should not invest in coal projects, Jin said, “The AIIB is planning to actively implement member states’ Paris climate change agreement. We’re planning to help member states achieve the reduction goals stipulated in the Paris agreement and to carry out subsequent projects in line with this principle.” Jin also expressed confidence about the possibility of the US and Japan becoming member states: “The door is always wide open.”

This year’s conference, which was the first to be held in a member country other than China (where the bank is headquartered), was organized around the theme of “Sustainable Infrastructure.” During the conference, South Korea‘s Deputy Prime Minister and Finance Minister Kim Dong-yeon and 1st Vice Minister of Strategy and Finance Ko Hyoung-kwon held bilateral meetings with their counterparts from 10 countries, including the finance ministers of China, Iran, Laos and Singapore. In regard to the meeting with China’s Finance Minister, the first such meeting in 11 months, the Ministry of Strategy and Finance predicted that there would “continue to be dialogue between the two countries in the future.” The Chinese Finance Ministry had repeatedly turned down South Korean requests for meetings after a dispute arose over the THAAD issue.

By Bang Jun-ho, staff reporter

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