What did South Korea and Japan agree about their currency swap arrangement?

South Korea and Japan agreed to extend their $10 billion U.S. dollar currency swap arrangement for three more years. Its size will remain unchanged, and the arrangement will run through November 2029.

When and where did South Korea and Japan agree to extend the currency swap deal?

Finance Minister Lee Hyoung-il and Japanese Finance Minister Satsuki Katayama reached the agreement in Bangkok during a meeting on the sidelines of the 2026 Annual Meetings of the IMF and the World Bank Group.

How does the South Korea-Japan currency swap protect against financial turmoil?

The arrangement allows a country facing a liquidity crunch to borrow foreign currency in exchange for its own currency. The two countries said their foreign exchange authorities currently have ample liquidity and viewed the arrangement as a symbol of bilateral cooperation.

Seoul, Tokyo agree to extend $10 bil. currency swap deal by another 3 years

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Summary

Korea and Japan agreed in Bangkok Thursday to extend their $10 billion currency swap arrangement for another three years as the deal nears expiration. Finance Minister Lee Hyoung-il and Japanese Finance Minister Satsuki Katayama reached the agreement during the 2026 IMF and World Bank meetings. The arrangement will remain unchanged in size and run through November 2029.

Key Facts

The three-year currency swap deal was signed in December 2023 and was due to expire in November.
The arrangement involves the U.S. dollar and allows a country facing a liquidity crunch to borrow foreign currency in exchange for its own currency.
Both countries’ foreign exchange authorities said they currently maintain ample liquidity and described the swap as a symbol of bilateral cooperation.
The two sides agreed to hold a ministerial meeting in Korea as soon as possible.

By Yonhap

Published Oct 15, 2026 5:08 pm KST

Finance Minister Lee Hyoung-il, right, shakes hands with his Japanese counterpart, Satsuki Katayama, in Bangkok, Thursday. Courtesy of Ministry of Finance and Economy

BANGKOK — Korea has agreed with Japan to extend their $10 billion currency swap arrangement, set to expire next month, by another three years, the finance ministry said Thursday, as the two countries seek to further bolster bilateral economic ties.

Finance Minister Lee Hyoung-il reached the agreement with his Japanese counterpart, Satsuki Katayama, during a meeting in Bangkok on the sidelines of the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group.

The two countries' three-year, $10 billion currency swap deal, signed in December 2023, was due to expire in November.

Under the latest agreement, the currency swap arrangement, which involves the U.S. greenback, will run through November 2029, with its size unchanged.

A currency swap is a tool designed to guard against financial turmoil by allowing a country facing a liquidity crunch to borrow foreign currency in exchange for its own currency.

During the meeting, the officials concurred that the foreign exchange authorities of both countries currently maintain ample liquidity, describing the currency swap arrangement as a symbol of bilateral cooperation.

The two sides discussed ways to expand bilateral exchanges in the economic and financial sectors, the ministry added.

They also agreed to hold a ministerial meeting in Korea as soon as possible.

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