By Jung Sung-ki
Staff Reporter
Korea is to conclude currency swap deals with China and Japan following a recent $30 billion swap with the United States.
``South Korea has nearly overcome its foreign currency liquidity problem following a currency swap deal with the U.S. and similar pending deals with China and Japan will be implemented soon,'' President Lee Myung-bak said in a meeting with government officials and businessmen at COEX in southern Seoul to promote exports.
``The nation should now focus its energy on expanding exports to avert a slump in the economy,'' the President said.
He asked exporters to diversify their overseas markets and develop new products next year.
The meeting is the second of its kind since Lee took office in February. The late President Park Chung-hee had initiated the so-called monthly export promotion meetings in the 1970s but they were suspended in the late 1980s following strong complaints from major trading partners, including the United States.
The Ministry of Knowledge Economy earlier announced a package of measures to expand exports, including an increase in insurance coverage for exporters from 130 trillion won to 170 trillion won next year.
KOTRA said it will guarantee the quality of goods produced by 500 small businesses in a bid to help them increase exports while enhancing product credibility.
The government raised its goal for next year's exports from an initial $480 billion to $500 billion.
According to the government, Seoul and Beijing are in talks over a dollar-based currency swap deal valued at between $10 billion and $30 billion.
In addition, the government will soon open negotiations with Japan on expanding the volume of an existing bilateral currency swap between the two nations, officials said.
The Seoul government has been struggling to secure as much foreign currency as possible as its foreign currency reserves have shrunk for the seventh consecutive month, with the single largest monthly drop of $27.4 billion recorded in October. In October, the holdings totaled $212.2 billion.
President Lee urged banks not to hesitate in extending much-needed credit lines to exporters.
``Attention should now be put on efforts to revive the economy. Among these, exports will be the biggest public concern and will have the greatest impact on the economy next year,'' he said. ``Both the government and banks have to extend full support to export companies.''
In a weekly Cabinet meeting, Lee instructed his Cabinet ministers to implement the 14 trillion won stimulus package unveiled Monday.