S. Korea, China, Japan to set up US$80 bln fund, official says

SEOUL, Oct. 5 (Yonhap) -- South Korea, China and Japan have tentatively agreed to set up a US$80 billion fund to jointly cope with the fallout from the U.S.-led global credit crisis, a South Korean official said Sunday.

Deputy Finance Minister Shin Je-yoon said the three nations are pushing to
raise the fund by May next year. He did not rule out the possibility that the fund
would be raised earlier than originally planned.
"No agreement has been reached yet on how they allocate the $80 billion or a
structure of decision-making," Shin told reporters."However, it will bring a
precautionary effect from the fact that raising the fund is gaining in speed."
On Friday, South Korean President Lee Myung-bak proposed that the finance
ministers of his country, Japan and China meet to cooperate their policies in the
midst of the U.S.-sparked global financial turmoil.
"The U.S.-sparked financial crisis is showing signs of spreading through the real
economy worldwide," Lee said at a meeting with his economy-related ministers. "In
order to strengthen a regional cooperation, it would be appropriate for South
Korea, China and Japan to push for a meeting with finance minister."
South Korea, Japan and China are among the world's top six holders of foreign
exchange reserves.
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