South Korea and Japan Extend $10 Billion Currency Swap Agreement to 2029

South Korea and Japan have agreed to extend their $10 billion currency swap agreement by three years, moving the expiration date from the end of next month to November 2029. According to South Korea's Ministry of Strategy and Finance, Vice Prime Minister and Minister of Economy and Finance Lee Hyung-il reached this accord with Japanese Finance Minister Kazufumi Katayama in Bangkok on the 15th. Both sides noted that while their respective foreign exchange authorities currently hold sufficient foreign currency liquidity, they decided to continue the existing arrangement given the symbolic significance of the agreement as a marker of financial cooperation and policy coordination.