Hong Ki-taek, chairman of the state-run Korea Development Bank (KDB), has been named as a vice chief of the China-led Asian Infrastructure Investment Bank (AIIB). It is the first time in 13 years for a Korean to take the vice presidency at an international financial organization.
The Ministry of Strategy and Finance (MOSF) announced on February 3 that the board of executive directors of AIIB has finally approved the nomination. Hong will take office as the bank’s chief risk officer (CRO), one of five vice presidents of the new international body. Previously, Jin Liqun, the first president of the AIIB, recommended Hong as one of the five candidates on January 20.
After going through contract procedures, including working conditions, Hong will be officially appointed soon to serve the position in Beijing for three years. The exact time of his inauguration will be decided later after discussion with the AIIB.
A spokesperson from the MOSF said, “It is the first time in 13 years for a Korean to take the vice presidency at an international financial organization since Korea took the vice presidency at the Asia Development Bank from 1988 to 2003. With active support from President Park Geun-hye and the government, Korea could achieve such a result.”
The AIIB will choose Chief Administrative Officer, Chief Investment Officer and other two vice presidents in the Corporate Secretary and Policy and Strategy sectors.
As the bank’s CRO, Hong will oversee analysis of financial investment and risk for the organization. He will also participate in the institution’s decision-making body for core investments as one of four members, along with the bank’s president.