diplomatic tensionsSeoul, Oct 13 (AFP) South Korea and China have renewed aUSD 56 billion currency swap deal, Seoul said today, despitetensions over the controversial deployment of a US anti-missile system in the South.
There had been fears the diplomatic row would threatenthe major economic agreement that expired on Tuesday, but thecentral Bank of Korea said it has been extended for anotherthree years.
Ties between the two Asian neighbours have soured overthe deployment of the powerful US weapon in the South -- aimedat guarding against North Korea's missile threats but viewedby Beijing as a threat to its own security.
The deal, seen as a financial safety net to helpstabilise the South Korean won, accounts for around half ofthe South's entire currency swap deals. It was first signed in2009 and has been renewed several times.
"The extended agreement took effect as of October 11, sothe deal was extended without a single day of disruption," thecentral Bank of Korea Lee Ju-Yeol told reporters.
Seoul announced last month it would deploy more of theTerminal High-Altitude Area Defense (THAAD) systems after theNorth's sixth nuclear test and a series of missile launchesthat sparked global alarm.
Two launchers are already operational and since late lastyear China -- the South's top trading partner -- has taken aseries of measures against South Korean businesses, seen bySeoul as unofficial economic retaliation. (AFP)CPS.
This is unedited, unformatted feed from the Press Trust of India wire.