(LEAD) S. Korea open to joining China-led infra bank if conditions met: minister

(ATTN: ADDS quotes, details in para 6, last 5 paras, photo)

BEIJING, Oct. 22 (Yonhap) -- South Korea's Finance Minister Choi Kyung-hwan said Wednesday that Seoul would be willing to join a push by Beijing to set up a new regional bank to fund infrastructure projects in Asia if certain conditions are met.

China has been preparing to set up the planned Asia Infrastructure Investment Bank (AIIB) as a counterbalance to the Asian Development Bank led by the United States and Japan, and has asked countries in the region, including South Korea, to join the drive. The U.S. has been negative about the Chinese plan.

Choi held bilateral talks with China's finance minister Lou Jiwei in Beijing on Tuesday, during which the issue topped the agenda, ahead of the 21st APEC Finance Ministers' Meeting that was held on Wednesday.

South Korea has asked China to improve the governance structure of the proposed AIIB, Choi told reporters on the sidelines of the Wednesday event.

"Rationality as an international financial institution is our precondition," Choi said. "If such issues are resolved, there will be no reason for us not to join the AIIB," Choi said.

Besides the governance structure, Choi referred to some provisions for an investment guarantee that still need to be resolved.

During the meeting with Lou, Choi said that Seoul and Beijing agreed to continue discussions about the issue, acknowledging that a wide gap remains between the two nations.

"We agreed to continue talks because there has been no clear progress over the issue," Choi said.

Chinese President Xi Jinping officially asked South Korea to join the AIIB during his visit to Seoul in July.

Choi reaffirmed that South Korea and China will make major efforts to conclude bilateral free trade talks with China by the end of this year.

"During the talks with my Chinese counterpart Lou, we agreed to make utmost efforts to conclude the free trade talks by the end of this year as agreed by President Park Geun-hye and Chinese President Xi Jinping," Choi said.

The two nations started their formal free trade negotiations in May 2012, and Park and Xi agreed to work together to achieve an agreement by the end of 2014 during the July summit.

Agriculture and fisheries are considered the most sensitive sectors for South Korea, while China categorizes its manufacturing industries, which include the automobile, machinery and oil sectors, as sensitive.

China accounts for more than 30 percent of South Korea's exports. Two-way trade of goods between South Korea and China totaled about US$270 billion last year, according to Chinese government figures.

kdh@yna.co.kr
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