China’s plans to set up the Asian Infrastructure Investment Bank next year are steaming ahead, with up to 21 countries having agreed — in principle — to join the institution as founding members, while others remain undecided.
Among the latter is South Korea, where negotiations with China have been progressing, but concerns over AIIB’s governance and capital structure are being hashed out.
“There are problems on governance and capital structures,” Kayoung Hong, deputy director of financial cooperation at the Ministry of Strategy and Finance in Seoul, told Devex. “[The issue on governance is that there’s] consensus internationally that the [memorandum of understanding] is dominated by one country.”