April 27, 2024
Finance
THAAD issue may affect Sino-Korea currency deal
[THE INVESTOR] Korea’s diplomatic tensions with China may weigh heavily on their upcoming talks on extending the bilateral currency swap deal, the central bank said on June 5.
China has taken a series of economic retaliations to protest the deployment of THAAD defense system.
Some Koreans are concerned that the diplomatic tensions could jeopardize the currency swap agreement, although Beijing has been moving to ease its hostile stance after liberal President Moon Jae-in took office in Seoul.
Moon has been critical of the missile defense system during the campaign trail, but he said Seoul will not reverse the deployment agreement.
Last year, Korea and China agreed to prolong the bilateral currency swap deal, which was first initiated in 2009 with a value of 32 trillion won (US$27 billion) and expanded to 64 trillion won in 2011.
“The two countries will launch negotiations to lengthen the deal that expires in October at an appropriate time,” the Bank of Korea said in a report submitted to the parliament. “The negotiations will likely be affected by political and diplomatic issues, we will take cautious steps.”
By Alex Lee and newswires (alexlee@heraldcorp.com)
China has taken a series of economic retaliations to protest the deployment of THAAD defense system.
Some Koreans are concerned that the diplomatic tensions could jeopardize the currency swap agreement, although Beijing has been moving to ease its hostile stance after liberal President Moon Jae-in took office in Seoul.
Moon has been critical of the missile defense system during the campaign trail, but he said Seoul will not reverse the deployment agreement.
Last year, Korea and China agreed to prolong the bilateral currency swap deal, which was first initiated in 2009 with a value of 32 trillion won (US$27 billion) and expanded to 64 trillion won in 2011.
“The two countries will launch negotiations to lengthen the deal that expires in October at an appropriate time,” the Bank of Korea said in a report submitted to the parliament. “The negotiations will likely be affected by political and diplomatic issues, we will take cautious steps.”
By Alex Lee and newswires (alexlee@heraldcorp.com)
