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| ▲ Finance Minister Choo Kyung-ho speaks to officials from Japanese financial companies in Tokyo on June 30, 2023, in this photo released by the Ministry of Economy and Finance. (PHOTO NOT FOR SALE) (Yonhap) |
finance minister-Japanese investors
S. Korea to issue yen-denominated FX stabilization bonds this year: Choo
By Kang Yoon-seung
SEJONG, June 30 (Yonhap) -- South Korean Finance Minister Choo Kyung-ho said Friday the country plans to issue yen-denominated foreign exchange stabilization bonds this year in line with its efforts to expand economic ties with Japan.
Choo announced the plan during his meeting with officials from 10 Japanese financial firms, including Sumitomo Mitsui Banking Corp., Mizuho Financial Group and the Japan Bank for International Cooperation in Tokyo, the Ministry of Economy and Finance said.
It would mark the first time for South Korea to issue yen-denominated foreign exchange bonds for Japanese institutional investors.
During the session, Choo noted that South Korea and Japan can mutually benefit from their close cooperation in addressing shared interests, such as geopolitical risks and the reshuffle of supply chains.
The minister added it is important for the two neighbors to seek closer cooperation in the economy and private sectors on the back of the improved bilateral ties.
In line with such efforts, Choo said South Korea's issuance of yen-denominated bonds will provide Japanese companies with new investment opportunities and induce South Korean companies to issue more yen bonds.
The foreign exchange bonds are sold to secure reserves against volatility in the currency market.
The minister was visiting Tokyo to meet his Japanese counterpart the previous day, in the latest sign of a thaw in economic relations between the two countries.
On Thursday, South Korea and Japan agreed to resume their currency swap, which has been stalled since 2015. The new arrangement, worth $10 billion, will be based on the U.S. dollar, facilitating the exchange of the Korean won for Japan's greenback reserves, and vice versa, the finance ministry said.
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