South Korea and Japan Extend $10 Billion Currency Swap for Three More Years
South Korea and Japan have agreed to prolong their $10 billion currency swap, now set to run until November 2029.
At a side session of the 2026 IMF and World Bank Annual Meetings in Bangkok, South Korea’s finance minister Lee Hyoung-il and Japan’s finance minister Satsuki Katayama agreed to extend their $10 billion currency-swap facility for an additional three years, now lasting until November 2029. The swap, originally signed in December 2023, will retain its size and continue to involve the U.S. dollar. Officials noted that both countries currently enjoy sufficient foreign-exchange liquidity, describing the swap as a symbol of their cooperation.
The meeting also covered ways to deepen bilateral economic and financial interactions, and the two parties intend to hold a ministerial dialogue in South Korea in the near future. The finance ministry confirmed the extension and highlighted its role in safeguarding against potential liquidity shocks.
Why it matters
The extension secures a financial safety net between two major Asian economies, supporting regional stability.
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