Japan, South Korea to discuss FX swop deal in first finance talks since 2016

TOKYO - Japan and South Korea will hold their first bilateral finance dialogue in seven years on Thursday, with both lookingas they face common geostrategic risks from an increasingly assertive China and an unpredictable North Korea.

The swop deal expired in 2015 amid worsening relations over issues related to Japan’s wartime occupation of the Korean Peninsula, and its restoration would symbolise the improvement in relations, analysts say. It was never used. “We must strongly raise the momentum for historic improvement of Japan-South Korea relations. There’s increased need of strengthening the bilateral ties as global and regional economies face major uncertainty and risks,” Mr Masato Kanda, vice-finance minister for international affairs, told reporters.

The ministers will also discuss global economic developments, infrastructure investment in developing countries, and the role both countries could play in multilateral financial cooperation.

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