The South Korean Ministry of Finance has declared that it will be issuing yen-backed foreign exchange stabilization bonds in the upcoming month to bolster economic ties with Japan. This will be the first time the country has released bonds of this kind to Japanese institutional investors.
Estimates suggest the amount of bonds to be at least 20 billion Japanese yen (US$134 million), though the precise figure has yet to be divulged. These bonds are created to protect against currency market instability.
In June, the two nations agreed to reestablish their currency swap, which had been suspended since 2015. This new agreement, which is worth $10 billion, will enable the Korean won and Japanese US dollar reserves to be exchanged, and vice versa.