South Korea urges AIIB to go beyond financing, help identify and prepare infrastructure projects

South Korea has called on the Asian Infrastructure Investment Bank to strengthen its role in helping developing countries identify and prepare infrastructure projects — not just provide financing. The proposal aims to maximize the impact of limited development resources as borrowing costs rise and member countries' fiscal capacity shrinks.

The Ministry of Economy and Finance said Wednesday that a delegation led by Kang Yun-jin, director general of the development finance bureau, attended the 11th AIIB Annual Meeting held Monday and Tuesday in Doha, Qatar. The meeting was held under the theme "Infrastructure for Tomorrow: Impact and Innovation."

At the Governor's Business Roundtable on Monday, the ministry outlined a framework for dividing roles and deepening cooperation among the AIIB, borrowing member countries that receive financing, and donor countries that provide resources.

The ministry said the AIIB should move beyond being a simple financing provider and become a development cooperation partner that translates member countries' development needs into concrete investment projects. It said the bank should provide the necessary technical support and expertise at every stage, from project identification and preparation through to financial support.

The ministry said it particularly expects the newly established Project Preparation Fund to serve as a bridge connecting the infrastructure needs of least-developed member countries and Pacific island nations to actual financial support.

For borrowing member countries, the ministry called on them to take ownership of projects. Since they best understand their own development needs and conditions, they should clearly set priorities and direction during the project preparation stage and remain actively involved throughout implementation. The ministry said that when borrowing member countries exercise such ownership, the sustainability of project outcomes improves as well.

Donor countries, the ministry said, should serve as facilitators and advisers — contributing not only financially but also by sharing their accumulated development experience and expertise. This, it said, would raise the quality and development impact of projects supported by the AIIB.

Kang introduced South Korea's experience of achieving economic development through development financing, noting that the country now shares its knowledge and experience with partner nations through the Knowledge Sharing Program (KSP). "Building on this experience, we will actively contribute to the AIIB's efforts to strengthen its project preparation and technical support capabilities," she said.

The AIIB is an international financial institution established in January 2016 to support economic development and regional cooperation in Asia through infrastructure investment.