- Need to stengthen financial cooperation
- Korea now has around $400 bln in fx liquidity
- See need for stronger regional cooperation against uncertainties
- Saw need with Japan for significant increase in swap agreement
- Swap deal with Japan will to help boost market confidence
- Sought dollar liquidity with Japan in line with market preference
- First approached Japan for swap expansion
- Swap line would be tapped to support private sector in crisis
- Don’t expect major impact on forex market from swap line
- Forex market not target of swap deal with Japan
- Focus of swap expansion on foreign currency liquidity
BOK Dep Gov
- Authorities need to prepare for worst to guard against shocks
- Swap expansion pursued in earnest in September
