hankyoreh

the sister magazine of state-run newspaper the People’s Daily

South Korea will have the third largest share in the China-led Asian Infrastructure Investment Bank (AIIB), a Chinese magazine predicted.

South Korea will come in third, following China and India, said the China Economic Weekly, the sister magazine of state-run newspaper the People’s Daily, in a May 4 article. The weekly was reporting on its analysis of the share of the 57 countries who have agreed to found the bank, according to their gross domestic product (GDP) in 2013. This analysis presumed an equity ratio of 75% for countries in the region and 25% for countries out of the region.

The magazine predicted that China will have by far the largest share in the bank, at 36.86%, and that India will be second at 7.48%. After South Korea, the fourth through seventh spots will be occupied by Germany, Indonesia, Turkey, and Saudi Arabia, the magazine said.

However, some experts think that this analysis is not fully consistent with the ongoing negotiations about the bank. According to an estimate by the Korea Institute for International Economic Policy (KIEP) at the end of April that referred to the methods used by major international financial bodies to calculate shares, South Korea’s share in the AIIB will be between 3.35% and 3.93%, which would put it between fifth and ninth place.

Other experts are predicting that Russia will ultimately be classified as a state in the region, which will enable it to vie with India for the position of the second largest stockholder.

By Park Young-rule, staff reporter

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