Policy Research
RESEARCH
KOTI - Korea Transport institute
Transport Infrastructure Sector Response Strategies in Accordance with the AIIB Launch
- Date
August 31 2015
- Page(s)
page(s)
#AIIB
#one zone road
#ADB system
#Asian transportation infrastructure
The total export value of Korea was 572.7 billion USD in 2014. Among them, the amount of export to China was 145.3 billion USD reaching 25.4% of total exports. Past and current governments have been promoting their continental linkage plans including Nordpolitik (Roh Tae-woo government), Iron Silk Road (Kim Dae-jung government) and recent Eurasia initiatives. These plans should be possible under close coordination with China because South Korea is located in the far east of the Eurasian continent and has limited land accessibility. China's future national policies, such as the One Belt, One Road and AIIB, need to be closely analyzed. Based on these analyses, it is necessary to propose strategic directions to help national interests.
The One Belt, One Road policy aims to stimulate the investment of Asia’s infrastructure and it needs to be well understood as it is China's primary strategy to lead the development of the Asia region as the second largest economic power of the world. The establishment of AIIB is to financially support the implementation of One Belt, One Road policy. The Korean government decided to join as a founder member of AIIB and therefore is required to prepare a strategy to cope with these changes.
In response, this study suggests seven strategic proposals. The first is to discover promising transportation infrastructure related to One Belt, One Road policy. Second is the activation of our oversees construction orders through public-private partnerships. The third are incentives to invest resources in Northeast Asia. Fourth is to establish an alternative partnership. Fifth will utilize the Greater Tumen Initiative and Northeast Asia Export-Import Bank Council. Sixth will participate in the AIIB governance. And finally the seventh is the initiation of multilateral economic cooperation based on transportation logistics infrastructure plans.
The One Belt, One Road policy aims to stimulate the investment of Asia’s infrastructure and it needs to be well understood as it is China's primary strategy to lead the development of the Asia region as the second largest economic power of the world. The establishment of AIIB is to financially support the implementation of One Belt, One Road policy. The Korean government decided to join as a founder member of AIIB and therefore is required to prepare a strategy to cope with these changes.
In response, this study suggests seven strategic proposals. The first is to discover promising transportation infrastructure related to One Belt, One Road policy. Second is the activation of our oversees construction orders through public-private partnerships. The third are incentives to invest resources in Northeast Asia. Fourth is to establish an alternative partnership. Fifth will utilize the Greater Tumen Initiative and Northeast Asia Export-Import Bank Council. Sixth will participate in the AIIB governance. And finally the seventh is the initiation of multilateral economic cooperation based on transportation logistics infrastructure plans.