EU Ambassador Says One-Euro Currency Swap Request "Must Be Fulfilled"

"Business Breakfast Meeting with EU Ambassadors to Korea"
"However, the Bank of Korea Governor Must Communicate Directly Through the European Central Bank"

Michael Reiterer, Ambassador of the European Union (EU) to Korea, is delivering the keynote speech at the 'Meeting with Business Leaders Invited by the EU Ambassador to Korea' held on the 12th at the Federation of Korean Industries building in Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Dongwoo Lee] Michael Reiterer, the Ambassador of the European Union (EU) to Korea, stated on the 12th that regarding the won-euro currency swap requested by the Federation of Korean Industries (FKI), "A currency swap between Korea and the EU must be established to ensure sufficient liquidity for large corporations as well as small and micro enterprises."

At a business breakfast meeting hosted by the FKI that morning, Ambassador Reiterer said, "Employment is created in small and medium-sized enterprises (SMEs). We need to help SMEs secure liquidity," adding, "Without SMEs, large corporations cannot exist."

This was a response to the proposal made earlier by Kwon Tae-shin, Vice Chairman of the FKI, who suggested a Korea-EU currency swap as one of the three major economic cooperation tasks related to the COVID-19 pandemic.

At the meeting, Vice Chairman Kwon proposed cooperation measures to the EU, including easing entry and exit and air travel restrictions through a fast-track system for businesspeople, supporting Korean companies operating in Europe affected by COVID-19, and concluding a won-euro currency swap agreement.

However, Ambassador Reiterer added, "Currency swaps are a framework that was used frequently in the past. It is not directly within my area of responsibility," and said, "Since the European Central Bank manages the euro, the fastest way would be to contact them directly through the Bank of Korea."

Regarding the Korea-EU FTA, he also said, "As e-commerce grows, the FTA is becoming outdated and losing relevance," adding, "A modernized FTA could include investment opportunities, commitments to comply with the Paris Agreement on climate change, and strengthened cooperation to promote SMEs and startups."

This content was produced with the assistance of AI translation services.