S. Korea, Japan might double won-yen currency swap line: report

SEOUL, Dec. 10 (Yonhap) -- South Korea and Japan may double a bilateral currency
swap line during a summit to be held later this week, a local media report said
Wednesday, quoting a high-ranking ruling party lawmaker.
"The swap issue will be discussed in the Korea-China-Japan summit talks to be
held on Saturday," the Korea Economic Daily quoted Yim Tae-hee, chief policymaker
of the ruling Grand National Party, as saying in an article posted on its
website. "Doubling the existing $3 billion swap line will be one of the main
agenda items."
Currently, South Korea can borrow up to $10 billion through a won-dollar swap
line and an additional $3 billion through a won-yen swap line. Yim must have
mentioned the won-yen currency swap line, experts say.
Yim, who could not be reached for comment, will reportedly accompany President
Lee Myung-bak for the talks to be held in Fukuoka.
Finance ministry officials declined to elaborate, saying there are "many"
proposals between the two nations on swap expansion, and Yim's figure is just
"one of them."
South Korea and Japan recently agreed "in principle" to expand the existing
currency swap line, a move aimed at helping the neighboring countries ride out a
possible liquidity crunch.
Talks on swap expansion among South Korea, Japan and China have been gaining
momentum, especially since Seoul reached a $30 billion swap agreement with the
United States Federal Reserve in late October.
kokobj@yna.co.kr
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