A decision by Britain to join a Chinese-led regional bank is likely to have a "big impact" on South Korea, which has yet to make a decision on whether to become founding members of the Asian Infrastructure Investment Bank, two South Korean diplomatic sources with direct knowledge of the matter said Monday.
  

The sources, who spoke on the condition of anonymity, said South Korea is still undecided on whether to join the AIIB by the end of this month, but indicated a mood of cautious optimism that China could address concerns about the proposed bank in the wake of the British decision.
  

The United States has been negative about the Chinese push that is seen widely as an attempt to bolster its economic clout by creating a counterbalance to the Asia Development Bank led by the United States and Japan. The U.S. has called for transparency and high standards of governance as key requirements for such an institution.
  

South Korea stayed away from a memorandum of understanding that China signed with 20 Asian nations in November to launch the AIIB amid speculation that Washington's pressure could have played a role in Seoul's decision.
  

In what would be the first major Western economy to apply to join the AIIB, Britain said last week that it will take part in negotiations this month on the AIIB's governance structure and operational policies.
  

To become a founding member of the AIIB, nations must apply to join the bank by the end of this month, according to the diplomatic sources.
  

"The British decision is expected to have a big impact on our stance because China might offer good conditions for Britain to do so," said one diplomatic source who is in regular touch with Chinese officials over the matter.
  

Senior finance ministry officials from South Korea and China have continued their consultations to discuss about possible conditions for Seoul to join the AIIB and the Chinese side expressed "sufficient understanding" about concerns from South Korea, the source said.
  

China has offered $50 billion with a reported stake of up to 50 percent in the AIIB, which South Korea viewed negatively because China could make a unilateral decision in the bank.
  

"One of our top priorities is whether other participating countries could have a combined voting power to block a unilateral decision by China in the AIIB," another diplomatic source said.
  

Asked whether China believes that countries like South Korea, Japan and Australia may be reconsidering their decisions of not joining the AIIB, Chinese foreign ministry spokesman Hong Lei replied on Friday, "Up to now, many countries have reacted positively and showed great support to the building of the AIIB, aspiring to join the AIIB as a prospective member."
  

"The preparation is proceeding smoothly. As I have mentioned, the AIIB adopts the principle of openness and inclusiveness and any interested country is welcome to join in. This is good for Asian countries, and will also enable relevant countries to share the opportunities of Asia's development," Hong said. (Yonhap)