"South Korea-Japan Finance Ministers Coordinating to Resume Currency Swap Agreement"

According to Kyodo News on the 27th, South Korea and Japan have entered final coordination to resume the currency swap agreement through a bilateral finance ministers' meeting scheduled for the 29th.

Deputy Prime Minister and Minister of Economy, Chung Kyung-ho, and Japan's Minister of Finance, Suzuki Shunichi, are exchanging greetings at the "56th Asian Development Bank (ADB) Annual Meeting Korea-Japan Finance Ministers Bilateral Meeting" on the 2nd of last month.
[Image source=Yonhap News]

According to Kyodo News, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and Japanese Finance Minister Shunichi Suzuki are expected to meet in Tokyo, Japan, for the Korea-Japan Finance Ministers' Meeting.

A currency swap refers to an agreement between two central banks to exchange their issued currencies at a predetermined value.

The Korea-Japan Finance Ministers' Meeting will be resumed after about seven years since August 2016, when then Deputy Prime Minister and Minister of Economy and Finance Yoo Il-ho and Japanese Deputy Prime Minister and Finance Minister Taro Aso met. The currency swap between South Korea and Japan began in 2001 but ended in 2015 as the contract expired amid deteriorating bilateral relations.

Since then, the two countries have been negotiating to resume the currency swap, but discussions were repeatedly halted due to issues such as the installation of the Japanese military comfort women statue.

However, following the Korea-Japan summit in March, bilateral relations improved, and discussions have resumed.

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