(EDITORIAL from Korea Times on March 28)

New development bank
Seoul ought to show more proactive, pragmatic diplomacy

In deciding to join the China-led Asian Infrastructure Investment Bank, South Korea chose national interests over fidelity to its most important ally, the United States. That should be the norm, not the exception, in this country's diplomacy from now on.

It was rather awkward for Asia's fourth-largest economy to drag its feet in jumping into the new Asian development bank being created. Still, Seoul could make its decision only after the U.S.'s major European allies made pre-emptive moves. The government's hesitation was regrettable, if not entirely incomprehensible, because in a newly developing organization the earlier a country arrives, the larger its right to speak becomes.

Seoul could not help but study the face of Washington, which did not like Beijing's challenge to its global financial dominance. Had the Park Geun-hye administration been more self-reliant, however, it could have persuaded the U.S. government that Korea's entry into AIIB was crucial to keep China's one-sided acts in check. And the earlier, the better.

Now the government has to make up for lost time by effectively negotiating with Beijing with respect to making basic rules for the new aid agency, especially to maximize Seoul's equity stake.

It is disappointing in this regard Chinese officials are considering giving Seoul the fourth-largest share, following India and Australia.

Beijing may be right to make GDP size its criterion in allocating equity stakes, but it should take other factors into account, such as participating countries' development know-how and experience, in which Seoul should be second to none in Asia, especially in helping less-developed neighbors in the rest of the continent. Korean contractors' world-class competitiveness in building roads and ports as well as Korea's communication and transportation industries are rather above the Asian norm.

Given AIIB is the first major international agency in which Korea is participating as a founding member, Seoul needs to make the most of the opportunity to expand its financial influence in the region and beyond. That will depend on Korean officials' ability to make their Chinese counterparts improve the governance structure, and ensure transparency in enforcing lending, environmental and labor standards to international levels. All this shows why Korea should strive to have a vice presidency, or at least attract the new bank's secretariat to Seoul.

That said, it is beyond us that some officials in foreign and defense ministries say Korea's joining the China-backed bank will help them push for the deployment of the U.S. missile defense system "less burdensomely." Now that Seoul has given a present to Beijing, it can, and should, do the same to Washington, too, so goes their reasoning.

Nothing could be more preposterous. Not only are the two issues totally different in nature, but Korea should never tie up its own feet with such closed thinking. Granted, this country is situated at the meeting point of continental and oceanic forces, but that should never be the reason for Korea to feel like a shrimp between whales. It can, and should, be a dolphin that can make whales move. The Terminal High Altitude Area Defense system has yet to prove its ability and suitability to the Korean situation. Nor has even Washington "formally" delivered its intention to Seoul. Seoul must never be in a hurry.

The U.S. will continue to be Korea's most influential, but it ought to be Seoul that determines Washington's share of influence.
(END)