The Bank of Korea has agreed to extend a US$3 billion won-yen currency swap contract with the Bank of Japan by three years.
The two central banks concluded the swap contract in May 2005, effective until July 3, 2007 in preparation for a liquidity shortage. It has already been extended once.
Park Joon-suh of the BOK said, "The $3 billion currency swap contract is not a large deal, but the two banks agreed to keep it at the current level just as part of a regional safety net."
It was expanded to $20 billion in December 2008, right after the global financial crisis started, but that lapsed on April 30.