South Korea to join China-led development bank

SEOUL — The South Korean government on Thursday announced that it decided to join a planned Chinese-led Asian development bank and informed Beijing of its decision.

Amid efforts by the Japanese government to improve its strained relations with neighbors China and South Korea, the move by Seoul will likely leave Japan isolated in Asia.

Yonhap News Agency quoted the Finance Ministry as saying the decision to play a part in the Asian Infrastructure Investment Bank was made to better help provide regional economies with the necessary funds to carry out critical development projects vital for growth.

“Once AIIB begins operations, it will likely spur large-scale infrastructure work in Asia that can help South Korean companies with extensive experience in construction, communication and transportation to expand their market presence,” the ministry was quoted as saying.

Last October, China, which will be the AIIB’s biggest shareholder, and 20 other countries, including Cambodia, India, Laos and Thailand, formally decided to launch the new bank by the end of this year.

China has said March 31 is the deadline for accepting the AIIB’s founding members.

Japan and the United States have been cautious about taking part in the AIIB, citing such issues as transparency at the institution.(KYODO NEWS)