South Korea’s Ministry of Economy and Finance announced on November 3 that the Bank of Korea and the People’s Bank of China renewed their bilateral currency swap agreement on November 1. The deal, worth 70 trillion won (approximately 400 billion yuan or about $56 billion), will remain in effect for five years.
The renewal was finalized on the sidelines of a summit between the two countries’ leaders in Gyeongju on November 1. According to the South Korean government, the agreement aims to promote bilateral trade, stabilize financial markets, and provide liquidity support for financial institutions operating in each other’s markets. Officials expressed confidence that the renewed pact will enhance trade cooperation and strengthen regional financial stability.
A currency swap arrangement enables central banks to exchange their currencies, offering a financial safety net during periods of market stress or exchange rate volatility. Such mechanisms play a key role in supporting economic cooperation and maintaining stability between major trading partners.
The five-year extension underscores both countries’ commitment to sustained financial collaboration and their shared interest in ensuring economic stability, even amid potential political or diplomatic challenges.
Source: Yonhap News Agency (Korea), November 3, 2025
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