First Vice Minister Kim Beomseok attended the 9^th Annual Meeting of the Asian Infrastructure Investment Bank (AIIB) held in Samarkand, Uzbekistan, from September 25 to 26. During his visit, VM Kim also met with AIIB President Jin Liqun to discuss ways to expand cooperation between Korea and the AIIB.

< The 9^th AIIB Annual Meeting >

The 9^th Annual Meeting of the AIIB, held under the theme “Building Resilient Infrastructure for All” saw participation from over 1,200 attendees, including delegations from 82 of the 109 member states, international financial institutions, infrastructure-related businesses, financial institutions, and academia.

During the Governors’ Business Roundtable session on September 25, VM Kim spoke on the strategic direction of the AIIB for building sustainable infrastructure.

Above all, he pointed out that the AIIB should establish itself as a “Green Bank” to lead the way for climate change response. He introduced Korea’s climate response efforts, such as the signing of a contribution agreement with the Green Climate Fund (GCF) worth $300 million, a new contribution of $7 million to the Fund for responding to Loss and Damage, and support for green technology and technology transfer to developing countries. VM Kim also urged the AIIB to take the lead in supporting the green economic transition of developing economies and to proactively engage in joint climate financing with other multilateral development banks (MDBs).

Next, he stressed the importance of securing sufficient financial resources to continue infrastructure investment, including climate finance. Stating that Korea is increasing its Official Development Assistance (ODA) budget for 2024 by 31% from the previous year, in an effort to fulfill its responsibilities as a global pivotal state, he recommended that the AIIB continue exploring ways to use concessional fund from external sources and leverage financial instruments such as credit guarantees to facilitate large-scale capital inflows.

Lastly, VM Kim underscored the significance of securing and developing human resources for the successful future of the AIIB. He mentioned Korea’s policy efforts focusing on nurturing domestic and international talent in advanced technology fields as part of its “Dynamic Economy Roadmap”, and encouraged the AIIB as well to continue efforts to attract young, talented individuals through its “Young Talent Program”[1] and to develop the capabilities of its staff.

Meanwhile, during the Board of Governors meeting held on September 26, delegations from various countries approved the AIIB’s 2023 Annual Report and Financial Statements, endorsed Nauru’s membership, and confirmed Beijing, China as the host city for the 10^th Annual Meeting next year.

< Meeting with AIIB President >

On the morning of September 25, prior to the Business Roundtable session, VM Kim met with AIIB President Jin Liqun.

VM Kim praised the President and the management team for the AIIB’s remarkable growth in a short period. He noted that the theme of this year’s Annual Meeting, “Building Resilient Infrastructure for All”, is very timely, especially as the role of MDBs in addressing global crises becomes increasingly important. He also expressed hope for fruitful discussions among member countries.

In response, President Jin extended gratitude for Korea’s ongoing support and contributions to the development of AIIB. Along with it, he showed his hope to continue close cooperation with Korea in a broad range of fields, including finance, infrastructure, and climate action, to support sustainable development in developing countries.

Lastly, VM Kim requested President Jin’s continued attention to expanding the number of Koreans employed across various levels in the AIIB, from senior to working-level positions. He also stressed the need for more Korean firms and financial institutions to participate in AIIB investment projects, thus further strengthening the partnership between Korea and the AIIB.