FKCCI "Welcomes Restoration of Korea-Japan Currency Swap... Will Be an Opportunity to Expand Economic Exchange"

30il Nonpyeong Balpyo
"Hanil Gwan-gye Ganghwa Gidae"

The Federation of Korean Industries (hereinafter FKI) has expressed its welcome for the restoration of the Korea-Japan currency swap.

On the 30th, FKI released a statement saying, "We sincerely welcome the restoration of the Korea-Japan currency swap, which the Korean and Japanese business communities have continuously emphasized as necessary, after 8 years," and added, "We evaluate this measure as an opportunity to stabilize the financial markets of both countries and expand economic exchanges, as well as establishing a firm framework of solidarity and cooperation in foreign exchange and finance with countries sharing universal values such as Korea, the U.S., and Japan."

It continued, "With the recent mutual restoration of the whitelist and other industrial cooperation measures, the conclusion of the currency swap is seen as a fruit of improved bilateral relations not only in manufacturing but also in the financial sector," and said, "We hope this measure will further strengthen Korea-Japan relations."

Finally, it stated, "Regardless of the ups and downs in the political and diplomatic relations between Korea and Japan, we hope the Korea-Japan currency swap will continue," and added, "FKI will also make greater efforts to strengthen economic cooperation and expand exchanges between the two countries together with the Japanese business community, including Keidanren."

Earlier, on the afternoon of the 29th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho met with Japan’s Minister of Finance Suzuki Ichiro at the Ministry of Finance in Tokyo for the 8th Korea-Japan Finance Ministers’ Meeting and agreed to restore the currency swap. The contract size is 10 billion dollars, and the contract period is 3 years. While the previous currency swap was a hybrid method where Korea deposited won and Japan lent both yen and dollars, this time the currency exchange is conducted 100% in dollars, which has the effect of expanding foreign exchange reserves.