South Korea plans to discuss bilateral FX swap with Japan, Finance Minister says

South Korean Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho speaks during an interview with Reuters in Incheon, South Korea, May 3, 2023. REUTERS/Kim Hong-Ji/File photo

SEOUL  -South Korea will discuss with Japan re-establishment of their bilateral foreign exchange swap line that expired in 2015, its finance minister said on Thursday.

“Current economic issues, including bilateral and regional financial cooperation, will be discussed at the bilateral finance minister meeting on June 29,” Minister Choo Kyung-ho said, adding that currency swap arrangement was also on the agenda.

Choo was speaking at a discussion forum, in response to a reporter’s question about the bilateral finance minister meeting between Japan and South Korea that is scheduled to be held in Tokyo.

The meeting will mark the revival of regular dialogue between the two countries’ finance ministers, which they agreed to bring back to life during their prior meeting in early May and had been suspended since 2016.

On the domestic economy, Choo said this year’s economic growth would likely be “slightly lower” than the government’s previous projection of 1.6 percent.

He said the revision would be contained in the government’s economic forecast due in late June or early July, when it releases its biannual policy plans.

Meanwhile, the government is not considering a supplementary budget for this year and does not plan to do so for a while, he said.

The country’s inflation, which cooled to a 19-month low in May, is likely to fall to the upper 2 percent level this month, but is still high and controlling it will remain as the top priority for a while, Choo said.

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