Ruling party floor leader describes currency swap deal as symbol of economic cooperation

By Lim Chang-won Posted : October 11, 2017, 13:43 Updated : October 11, 2017, 13:43

[Yonhap News Photo]


 The floor leader of South Korea's ruling Democratic Party described a currency swap deal between Seoul and Beijing as a symbol of economic cooperation, saying its extension would provide an opportunity for domestic companies to ease difficulties in China.

"Based on negotiations on a currency swap deal, we must solve the various difficulties South Korean companies face in China," Woo Won-shik told a party caucus Wednesday.

The swap deal worth 56 billion US dollars expired on Tuesday but it's not clear whether Seoul and Beijing agreed to continue negotiations on extending it.

South Korea has held low-profile negotiations amid lingering concerns about trade retaliation caused by a row over the deployment of a Terminal High Altitude Area Defense (THAAD) system.

"This is a symbol of economic cooperation between South Korea annd China," Woo said. "Bilateral relations have been in crisis due to a THAAD dispute, but the foundation of trust can not be changed."

South Korean officials hope an extended swap deal may signal an easing of China's informal trade and economic retaliation that intensified after US troops brought in the system to intercept North Korean ballistic missiles in April. Chinese consumers have shunned South Korean products.

The swap deal has served as a safety net for an emergency because South Korean and Chinese central banks can use each other's currency to ride out a financial crisis. Bank of Korea Governor Lee Ju-yeol has called for patience, saying negotiations could be held even after expiration.

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