AIIB can help North Korea give up nuclear weapons, South Korea says

SEOUL, July 1 (UPI) -- Seoul said it is taking a new approach to resolving North Korea's nuclear weapons program, and the recently launched AIIB could play a major role in the process.

In an interview with Yonhap on Wednesday, South Korea's National Assembly Speaker Chung Ui-hwa said the member nations of the six-party talks ought to collaborate with the Asian Development Bank and the Asian Infrastructure Investment Bank to resolve the nuclear problem.

"A system centered around the ADB and the AIIB to help the North Korean economy develop could be formed, on the condition North Korea agrees to halt its production of nuclear weapons," Chung said.

The plan could work if a multilateral consortium of countries can agree to protect the North Korean state system once Pyongyang decides to comply with outside requests to end its nuclear program, the South Korean lawmaker said.

Chung said the proposed "6+2 Northeast Asia Multilateral Security and Economic Cooperation Model" is to be presented during an ongoing meeting of five "middle" powers that include Mexico, Indonesia, South Korea, Turkey and Australia, or MIKTA.

Middle-power countries can play a significant role in providing feedback to larger and more powerful countries, said Chung, because they can create dialogue at different levels.

On Wednesday, South Korean President Park Geun-hye said international financial institutions can play an important role in North Korea's economic development.

Without mentioning the AIIB by name, Park said financial bodies could abet economic reforms in North Korea and allow Seoul to contribute to North Korean development through the international community.

Park said Myanmar was an example of economic reform leading to growth and development.

The AIIB was officially launched on Monday after a signing ceremony was held in Beijing.