Japan, S. Korea to Begin Talks on New Currency Swap Pact

Seoul, Aug. 27 (Jiji Press)--Top Japanese and South Korean finance officials agreed at a meeting in Seoul on Saturday to launch negotiations on a fresh bilateral currency swap agreement after the previous one expired last year. Following the meeting, Japanese Finance Minister Taro Aso told reporters that the South Korean government proposed concluding a new currency swap agreement on an equal footing and that both sides agreed to begin talks on its details. A currency swap scheme will allow Japan and South Korea to mutually supply foreign currencies in the event of emergencies such as a financial crisis. A currency swap framework "will stabilize regional financial markets and promote trade and investment between the two countries," Aso said. "Such a scheme will be a key pillar of bilateral economic cooperation in that it will contribute to sustainable growth." A Japanese official accompanying Aso on his Seoul visit suggested that it will take time for the two countries to conclude a currency swap deal. "There are a lot of issues to be sorted out, including its scale and terms on interest. We have to clear them one by one, so it's not going to be an easy task," the official said. Saturday's meeting, the seventh session of the Japan-South Korea financial dialogue, was also attended by South Korean Deputy Prime Minister and Minister of Strategy and Finance Yoo Il-ho. Both sides agreed that continuing the dialogue will be useful for promoting bilateral economic and financial cooperation. Participants at the meeting also reaffirmed bilateral cooperation to promote negotiations to conclude a Japan-China-South Korea free trade agreement and an Asia-wide Regional Comprehensive Economic Partnership, as well as international cooperation against protectionism. The financial dialogue was resumed in May last year. Next year's session will be held in Japan.Copyright JIJI PRESS LTD.