[Hong Seung Hee Column]
Let's forget Korean-Japanese currency swap for a while
buslog@hanmail.net Approval 2020.05.04 09:58
Editor in chief 홍승희 ( Hong Seunghee )
What is a Cross Currency Swap? Signing of a Korean Currency Cross Currency Swap Agreement
2020/03/20
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Around this time, nuances have appeared in some media that Japan should support quarantine supplies and conclude a Cross Currency swap.
Of course, under an uncertain world economic situation, it is desirable to connect a cross-currency swap with various countries on a large scale.
However, Japan feels that the current Korean-Japanese Cross Currency swap is simply like economic aid to South Korea, and shows the move to use it as a weapon in the ROK-Japan relationship.
In the past, 李明博(Lee Myung-bak,이명박,イ・ミョンバク）'s visit to 独島(Dokdo) (Japanese name:竹島(Takeshima, 다케시마)) was used as an excuse to cancel the bilateral Cross Currency swap. , 朴槿恵(Park Geun-hye,박근혜,パク・クネ）was re-confirmed by the government, and the Japanese side demanded the removal of the girls statue .
Even now, Japan has raised the present (Korean-Japan Cross Currency) swap as a present to improve Korea-Japan relations,
Japan expect the Korean government to give in.
文在寅（Moon Jae-in,문재인,ムン・ジェイン）administration does not easily compromise Japan as compared to successive governments, and the interpretation that the current Japanese government's card is only currency (Cross Currency) swap Is also possible.
Currently, South Korea has concluded cross currency swaps with many countries other than Japan, and the total size will reach 193.2 billion dollars except Canada, which does not set a limit in advance, according to the Bank of Korea. Has revealed.
In terms of scale, most of the agreements are between the two countries with individual nations, but the multilateral agreement with ASEAN 3 is worth $ 38.4 billion.
Of this, the US is 60 billion dollars, accounting for nearly half, and China, which was signed in the original currency, is second to the US in terms of dollar conversion at about 56 billion dollars.
Probably the reason for the US's conclusion of the Korea-US Cross Currency swap at a scale of 60 billion dollars is probably due to the size of the previously-issued Cross Currency swap with China.
There is no reason for South Korea to stick to the Cross Currency Swap in such a situation.
This is because there is little risk that Korea will face a situation like the past foreign exchange crisis, even if there is nothing.
Around this time, nuances have appeared in some media that Japan should support quarantine supplies and conclude a Cross Currency swap.
Of course, under an uncertain world economic situation, it is desirable to connect a cross-currency swap with various countries on a large scale.
However, Japan feels that the current Korean-Japanese Cross Currency swap is simply like economic aid to South Korea, and shows the move to use it as a weapon in the ROK-Japan relationship.
In the past, 李明博(Lee Myung-bak,이명박,イ・ミョンバク）'s visit to 独島(Dokdo) (Japanese name:竹島(Takeshima, 다케시마)) was used as an excuse to cancel the bilateral Cross Currency swap. , 朴槿恵(Park Geun-hye,박근혜,パク・クネ）was re-confirmed by the government, and the Japanese side demanded the removal of the girls statue .
Even now, Japan has raised the present (Korean-Japan Cross Currency) swap as a present to improve Korea-Japan relations,
Japan expect the Korean government to give in.
文在寅（Moon Jae-in,문재인,ムン・ジェイン）administration does not easily compromise Japan as compared to successive governments, and the interpretation that the current Japanese government's card is only currency (Cross Currency) swap Is also possible.
Currently, South Korea has concluded cross currency swaps with many countries other than Japan, and the total size will reach 193.2 billion dollars except Canada, which does not set a limit in advance, according to the Bank of Korea. Has revealed.
In terms of scale, most of the agreements are between the two countries with individual nations, but the multilateral agreement with ASEAN 3 is worth $ 38.4 billion.
Of this, the US is 60 billion dollars, accounting for nearly half, and China, which was signed in the original currency, is second to the US in terms of dollar conversion at about 56 billion dollars.
Probably the reason for the US's conclusion of the Korea-US Cross Currency swap at a scale of 60 billion dollars is probably due to the size of the previously-issued Cross Currency swap with China.
There is no reason for South Korea to stick to the Cross Currency Swap in such a situation.
This is because there is little risk that Korea will face a situation like the past foreign exchange crisis, even if there is nothing.
In addition, we have a hard time remembering that the first money to escape from Japan was the Japanese money at the time of the foreign exchange crisis. There is no reason to hurry to conclude a contract with Japan, which shows a jealous stance.
In addition, it is necessary to keep in mind that the danger of the Japanese economy, which is expected in the future, may make the Korean economy difficult.
The Japanese yen is still considered a safe asset, but the size of Japanese government debt is extraordinary.
The situation in Japan, which has no choice but to fill government debt to reach 240% of GDP and 40% of public finance with government bond issuance, is a level that cannot be overlooked.
Some argue that Japan's net foreign assets exceed $ 9 trillion and that the Japanese economy is safe.
This is the reason why the Japanese yen is believed to be a safe asset.
The world's No. 1 creditor nation for 28 consecutive years and such an evaluation clearly have grounds.
However, the amount of foreign exchange reserves held by the Japanese government is more than 1.3 trillion dollars, which is less than 15% of all bonds.
The rest is foreign debt held by the private sector, including individuals.
It is not a national asset that can be immediately mobilized for the government's financial crisis.
Also, even if the Japanese yen is regarded as a safe asset and there is no danger of withdrawal of foreign funds, the amount of foreign investment in Japanese government bonds is at the 10% level. It may be a phenomenon that we often ignore that the glory of the past does not always guarantee the future.
The reason why the Japanese yen has been a safe asset until now is gradually disappearing.
Although it is still the world's third largest economy, Japan's manufacturing industry is dying, and economic recovery efforts through currency expansion are at high risk of causing the Japanese economy to fall even deeper during the recession.
『習近平(Xi Jinping,시진핑,习近平)virus (corona 19)』global economy terrain is large change other rather than by the situation, now, in the situation can be seen, the Japanese economy that most late situation is seen as ending a large relatively more Seemed to be hit.
In such a situation in Japan, it is highly likely that the Japanese side wants to conclude a cross currency swap.
Rather Korea is 『習近平(Xi Jinping,시진핑,习近平)virus (corona 19)』 increases the nation status in the wake of the epidemic prevention success, has become greater potential to become an advantageous position in the foreign currency management.
It's time to need more formal economic diplomacy.
At least in our relationship with Japan, there's no reason to show what we want.
独島（Dokdo 竹島 (Takeshima, 다케시마)
What is "normal Japan-Korea relationship"1
KoreaSyngmanRhee'sJapaneseSlaugInvasionAttempted
韓国と国交断絶 日韓会談を見送り 韓国の日本侵略未遂
Until the 李承晩（Syngman Rhee） line is abolished,
13 years, Japanese detainees by Korea 3,929 people, seized a ship number 328 vessels, casualties 44 people .
The detainees were pushed between the 6 tatami mat boards, 30 people, a little food and 30 people
Put 1 in a glass of water 1 poor detention life such as it must spend the day .
When he was found to be a communist, he was detained for several years.
「少女像(Girls statue) 」 problem
慰安婦(comfort women,군사 매춘부, Military Prostitutes) statue
A statue that is said to imitate the comfort women of the former Japanese army 慰安婦 (군사 매춘부, Military Prostitutes), which are mainly installed in Korea.
Many have been installed in Korea, starting with a Korean group installed in front of the Japanese embassy to protest the issue of 慰安婦 (comfort women,군사 매춘부, Military Prostitutes).
In addition to South Korea, those groups and powers are mainly located in areas with many Korean and Chinese residents, such as the United States, Canada, Australia, and Germany, as well as China and Taiwan.
In particular, the statues of 慰安婦 (comfort women,군사 매춘부, Military Prostitutes) in front of the Japanese Embassy and Consulate General in South Korea have developed into diplomatic issues between Japan and Korea.
Many have been installed in Korea, starting with a Korean group installed in front of the Japanese embassy to protest the issue of 慰安婦 (comfort women,군사 매춘부, Military Prostitutes).
In addition to South Korea, those groups and powers are mainly located in areas with many Korean and Chinese residents, such as the United States, Canada, Australia, and Germany, as well as China and Taiwan.
In particular, the statues of 慰安婦 (comfort women,군사 매춘부, Military Prostitutes) in front of the Japanese Embassy and Consulate General in South Korea have developed into diplomatic issues between Japan and Korea.
Korea's claimed
慰安婦 (comfort women,군사 매춘부, Military Prostitutes)
慰安婦 (comfort women,군사 매춘부, Military Prostitutes)
South Korea claimed a sex slave forced by the government and the army.
The term
"comfort women", which is often used to refer to comfort women in the Japanese military, is also used in the Korean military after the Japanese forces disappeared after World War II.
Also, synonymous women exist in the German and French forces.
Comfort women were legal prostitutes at that time, and
recruiters who had been paid by private companies widely recruited in newspaper advertisements and adopted Japanese women inland as comfort women.
The term
"comfort women", which is often used to refer to comfort women in the Japanese military, is also used in the Korean military after the Japanese forces disappeared after World War II.
Also, synonymous women exist in the German and French forces.
Comfort women were legal prostitutes at that time, and
recruiters who had been paid by private companies widely recruited in newspaper advertisements and adopted Japanese women inland as comfort women.
When the foreign exchange crisis occurred, the first money that escaped was Japanese money
IMF relief in Korea
The success or failure of debt repayment (rescheduling) for private banks in Japan, the US, and Europe held the key to avoiding Korea's bankruptcy.The Government of Japan struggled to persuade the Japanese banks to defer their repayments, and in the confusing financial market, they settled the agreement of the Japanese banks, and on January 29, 1998, the negotiations for deferring short-term debt of the Japanese, American, and European private banks were made. Led to a conclusion.
This gave a great relief to the market, and the exchange rate of 1 dollar = 1,678 won on January 29 returned to 1,524 won on January 30 the following day.
