The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    BTS stars shine brighter as solo artists

  • 3

    North Korean escapees tell how nuclear tests ruined their health, hometown

  • 5

    ITZY's Lia takes break to put mental health first

  • 7

    USFK soldier, 2 women arrested for drug trafficking

  • 9

    Seventeen to drop 11th EP next month

  • 11

    Foreign ministry asks Japan to investigate case of Korean poisoned with bleach in Tokyo

  • 13

    Unfreezing of funds not likely to restore Korea-Iran ties

  • 15

    Seoul plans to build Jamsil Sports MICE Complex

  • 17

    Invasion of 'smart' albums

  • 19

    All BTS members renew contracts with HYBE: agency

  • 2

    '30 Days' promises laughter, unlikely romance

  • 4

    30 people purchased 8,000 homes: data

  • 6

    Rowoon leaves SF9 to focus on acting career

  • 8

    Korea urged to adopt China exit strategy amid hegemonic war

  • 10

    INTERVIEWPutin uses summit with NK leader to stop Seoul from helping Ukraine: expert

  • 12

    Lamborghini driver suspect sent to prosecutors over parking dispute in Gangnam

  • 14

    Netflix's 'Song of the Bandits' blends western action with Korean period series

  • 16

    Merck emphasizes digitalization in semiconductor market

  • 18

    Yanolja's aggressive expansion results in voluntary redundancy program

  • 20

    Global oil price surge stokes stagflation concerns

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Fri, September 22, 2023 | 06:50
Economy
Outlook for Korea-China currency swap uncertain
Posted : 2017-10-08 21:50
Updated : 2017-10-10 10:15
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
By Park Hyong-ki



Oct. 10, 2017 is the final deadline to extend a currency swap between Korea and China.

Even though the country's fiscal and monetary authorities say their working-level officials are continuing to engage in negotiations with their Chinese counterparts, it remains uncertain whether the two sides will further extend the period of the $56 billion swap.

This is mainly because of the ongoing geopolitical dispute over the U.S. anti-missile system deployed here.

And Beijing has been direct to say and show it is not and will not be happy with the Terminal High Altitude Area Defense (THAAD), even if Seoul and Washington say it is aiming at Pyongyang.

China has been retaliating against the Korea-U.S. alliance's move, targeting mostly Korean companies, including Lotte, Hyundai Motor and AmorePacific.

The world's second largest economy even refused to talk to Korea by not sending its commercial trade minister to the ASEM meeting in Seoul last month.

As the ongoing situation does not seem to brighten the future relations between the two sides, it is taking a toll on the outlook for the bilateral swap deal.

The government and the central bank have asked the public to wait and be patient as they are working with China.

"Our policy is we seek to extend the swap with China without setbacks, and we are doing our best to achieve the best result," Finance Minister Kim Dong-yeon said of late.

Bank of Korea Governor Lee Ju-yeol also echoed Kim, recently telling reporters, "We would like to conclude the talks as fast as we can, and the People's Bank of China's position over this issue is no different from ours."

Korea and China sealed the swap deal three years ago, following two extensions in 2011 and 2014.

The country first made the won-yuan currency swap in December 2008 as Korea sought to further prepare itself against future financial crises by beefing up its foreign currency reserves.

Meanwhile, China has been seeking to make the yuan as one of the key global currencies, along with the U.S. dollar, euro and Japanese yen.

Korea's $56 billion swap with China is significant because it accounts for nearly 46 percent of the country's total swap deals with other economies.

Some say it will not make any difference even if the talks to extend the swap fall apart given Korea's foreign currency reserves at more than $380 billion, a record high.

However, others say if they do not extend it, it would be lose-lose for both because Korean banks will face losses from not being able to trade yuan. Also, China's efforts to make the yuan an international currency will be negatively affected.

The BOK chief held a meeting with his counterparts Zhou Xiaochuan, the governor of the People's Bank of China, and Haruhiko Kuroda, the governor of the Bank of Japan, on macroeconomic issues in Songdo, Incheon, last month.

However, the Korean central bank said then the currency swap was not part of the agenda.

Korea had a $70 billion currency swap deal with Japan as well. But they did not extend it due to diplomatic conflicts over Korea's statues commemorating wartime sexual slavery victims.

Emailhyongki@ktimes.com Article ListMore articles by this reporter
 
miguel
Top 10 Stories
130 people purchased 8,000 homes: data 30 people purchased 8,000 homes: data
2National Assembly passes motion to arrest DPK chiefNational Assembly passes motion to arrest DPK chief
3Gender equality minister nominee in hot seat over remarks on abortion Gender equality minister nominee in hot seat over remarks on abortion
4Seoul invites ambassadors to introduce new halal foods in KoreaSeoul invites ambassadors to introduce new halal foods in Korea
5KG Mobility seeks breakthrough in Europe KG Mobility seeks breakthrough in Europe
6S. Korea condemns Russia, seeks to mend ties with ChinaS. Korea condemns Russia, seeks to mend ties with China
7Civil servant mentor reappointed as labor ministry spokesmanCivil servant mentor reappointed as labor ministry spokesman
8Honey-dipped cookie to represent 'K-desserts' at global food expo in Germany Honey-dipped cookie to represent 'K-desserts' at global food expo in Germany
9COVID-19 deaths hit record high in Korea for 2022COVID-19 deaths hit record high in Korea for 2022
10Shilla hotel in Da Nang recognized at World Travel Awards Shilla hotel in Da Nang recognized at World Travel Awards
Top 5 Entertainment News
1Aespa's VR concert to hit theaters Oct. 25 Aespa's VR concert to hit theaters Oct. 25
2BTS defies K-pop's 'seven-year curse' BTS defies K-pop's 'seven-year curse'
3Gang Dong-won becomes exorcist con artist in 'Dr. Cheon and Lost Talisman' Gang Dong-won becomes exorcist con artist in 'Dr. Cheon and Lost Talisman'
4'30 Days' promises laughter, unlikely romance '30 Days' promises laughter, unlikely romance
5ITZY's Lia takes break to put mental health first ITZY's Lia takes break to put mental health first
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group