Asian Infrastructure Investment Bank
The establishment of the Asian Infrastructure Investment Bank (AIIB) is expected to be a boon for inter-Korean economic cooperation, the recovery of the global economy, and the co-prosperity of Asian economies. “The AIIB will be a platform on which Korean builders and engineering companies take a leading role in infrastructure projects in Asia worth US$8 trillion in total, which will result in the revitalization of the Korean economy,” the Korea International Trade Association explained.
The bank is predicted to be of great help for the economic initiatives in Northeast Asia including the Rajin-Khasan Project as well because China, South Korea and Russia participate in the bank as its founding members. This means the AIIB’s pilot projects can include the construction of an international port in the border area of North Korea, Russia and China.
The construction sector anticipates that it will be able to become a foothold for business in Asian infrastructure markets. “Demands for roads, railways and airports are high in the continent but most of the overseas projects led by Korean builders have been based on private investment due to the lack of government’s resources,” said the International Contractors Association of Korea (ICAK), adding, “However, the bank will make reliable financial resources for infrastructure projects in Asia and Korean companies will be able to benefit from it.” Daewoo Engineering & Construction echoed by saying it was mulling over investment in less-developed Asian countries with stable political conditions and room for development as tourist attractions.
According to the ICAK, the amount of the international contracts won by Korean construction firms increased from US$40.4377 trillion to over US$275 trillion between 2006 and 2013. Although it slipped to US$159.1552 trillion in 2014, the amount has already exceeded US$130 trillion this year.