SEOUL, Top economic policymakers of South Korea and Japan agreed Tuesday to take “appropriate actions” to curb excessive volatility of their currencies and enhance bilateral and multilateral cooperation on broader economic, financial and social issues, Seoul’s finance ministry said.
The consensus was made during the ninth Korea-Japan finance dialogue by South Korea’s Finance Minister Choi Sang-mok talks with his Japanese counterpart, Shunichi Suzuki, in Seoul, according to the Ministry of Economy and Finance.
The two ministers shared “serious concerned about the recent sharp depreciation of the Korean won and the Japanese yen” and recognized the importance of “remaining vigilant” in policy actions to support economic growth and ensure financial stability.
“They reaffirmed that they continue to take appropriate actions against excess volatility and disorderly movements in exchange rates,” the ministry said in a release.
The joint verbal intervention came as volatility in the foreign exchange market remain
s high amid geopolitical instability stemming from the ongoing conflicts in the Middle East and elsewhere.
The Korean won and the Japanese yen have weakened markedly against the U.S. dollar in recent months.
The Korean currency ended at 1,387.5 won against the U.S. dollar, staying near the closely watched level of 1,400 won, and the Japanese yen has neared the 160 line against the U.S. dollar, a level unseen in decades.
During the meeting, Japan voiced support for the Seoul government’s efforts to incorporate Korean treasury bonds into the World Government Bond Index by improving foreign investors’ access to its government bond investment.
Japan also welcomed a set of measures by South Korea meant to attract foreign investment and improve its financial market, including the corporate value-up program that gives incentives to companies for prioritizing shareholder returns and implementing other measures for investors, according to the ministry.
Also on the table was how to join hands on addressing such jo
int challenges as achieving sustainable growth.
Choi and Suzuki, in particular, agreed to share their policy measures and experiences regarding low birth rates and join hands to find solutions, according to the ministry.
“As key partners, I propose a joint contribution to addressing major global issues not only by enhancing bilateral cooperation but through such various channels as the Korea-U.S.-Japan ministerial talks and the Korea-Japan-China dialogue,” Choi said.
To further enhance their communication, the two sides agreed to launch an annual deputy ministerial-level meeting.
They also agreed to hold the 10th finance ministers’ dialogue in Japan next year.
It was the first time in eight years that top economic policymakers of the neighboring countries meet in Seoul.
The previous session took place in Tokyo in June 2023, which was the first meeting of its kind since 2016 amid diplomatic rows.
During last year’s ministerial meeting, Seoul and Tokyo agreed to resume a US$10 billion currency swap deal.
Source: Yonhap News Agency