It's almost certain now that Korea will lose its vice president and chief risk officer (CRO) position at the Asian Infrastructure Investment Bank (AIIB) it secured by promising to contribute $3.7 billion to the founding of the bank.
The China-led regional lender announced on its Web site last week that it had demoted the CRO position to a directorship level. Instead, the AIIB would create a vice president post in charge of finance.
Given some press reports that Thierry de Longuemar, a French national and former vice president of the Asian Development Bank, was tapped as the fledgling bank's new vice president, Hong Ky-ttack, the Korean CRO and vice president, has no other alternative but to step down.
All these developments came after the former CEO of the Korea Development Bank, the country's policy lender, disappeared in late June after taking a six-month leave of absence.
Korea is the fifth-largest shareholder in the AIIB with a 3.8 percent stake, which would have ensured Hong's vice presidency. His sudden departure will lead to the loss of Korea's national interest in that there is no high-ranking official who is Korean in the international development bank launched in January.
Hong disappeared after an accounting scandal involving Daewoo Shipbuilding & Marine Engineering erupted. He faced accusations of having sat on his hands during his tenure at KDB while the insolvency of the shipbuilder was snowballing. More importantly, he created a stir by claiming that the bailout of Daewoo was not a KDB decision but one made by top policymakers during meetings at Cheong Wa Dae.
But it's still a mystery why he disappeared all of a sudden. There is only speculation that China may have pressured him to quit, blaming him for the Daewoo fiasco, which was purely Korea's domestic problem. Our government needs to confirm the details of this speculation.
All this brouhaha involving Hong is a reminder of how "parachute appointments" can do harm to the national interest of a state. Hong, a former economics professor at a university in Seoul, was accused of lacking expertise and experience even when he was tapped as the KDB CEO in 2013. But he ultimately became one of the five vice presidents at the AIIB despite criticism that he was devoid of proper qualifications.
It's no secret that President Park Geun-hye stood behind him as both attended Sogang University in Seoul. Hong also took part in her presidential transition team.
After all, President Park has no one to blame but herself for the disaster at the AIIB. It's long overdue to uproot the evil practice of appointing those with political connections to public posts.
The China-led regional lender announced on its Web site last week that it had demoted the CRO position to a directorship level. Instead, the AIIB would create a vice president post in charge of finance.
Given some press reports that Thierry de Longuemar, a French national and former vice president of the Asian Development Bank, was tapped as the fledgling bank's new vice president, Hong Ky-ttack, the Korean CRO and vice president, has no other alternative but to step down.
All these developments came after the former CEO of the Korea Development Bank, the country's policy lender, disappeared in late June after taking a six-month leave of absence.
Korea is the fifth-largest shareholder in the AIIB with a 3.8 percent stake, which would have ensured Hong's vice presidency. His sudden departure will lead to the loss of Korea's national interest in that there is no high-ranking official who is Korean in the international development bank launched in January.
Hong disappeared after an accounting scandal involving Daewoo Shipbuilding & Marine Engineering erupted. He faced accusations of having sat on his hands during his tenure at KDB while the insolvency of the shipbuilder was snowballing. More importantly, he created a stir by claiming that the bailout of Daewoo was not a KDB decision but one made by top policymakers during meetings at Cheong Wa Dae.
But it's still a mystery why he disappeared all of a sudden. There is only speculation that China may have pressured him to quit, blaming him for the Daewoo fiasco, which was purely Korea's domestic problem. Our government needs to confirm the details of this speculation.
All this brouhaha involving Hong is a reminder of how "parachute appointments" can do harm to the national interest of a state. Hong, a former economics professor at a university in Seoul, was accused of lacking expertise and experience even when he was tapped as the KDB CEO in 2013. But he ultimately became one of the five vice presidents at the AIIB despite criticism that he was devoid of proper qualifications.
It's no secret that President Park Geun-hye stood behind him as both attended Sogang University in Seoul. Hong also took part in her presidential transition team.
After all, President Park has no one to blame but herself for the disaster at the AIIB. It's long overdue to uproot the evil practice of appointing those with political connections to public posts.
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