Regular finance meetings to resume between Korea, Japan

Financial Services Commission Chairman Kim Joo-hyun, left, and Teruhisa Kurita, Commissioner of Tokyo's Financial Services Agency, pose for a photo at a meeting in Tokyo on Oct. 3. [NEWS1]

The Financial Services Commission (FSC) and Japan’s Financial Services Agency agreed to resume regular “shuttle meetings” in Seoul in December, said the FSC after its chief paid a three-day visit to Japan through Wednesday.

FSC Chairman Kim Joo-hyun and Teruhisa Kurita, Commissioner of Tokyo’s Financial Services Agency, agreed to hold the two-day shuttle meeting in Seoul starting on Dec. 19.

The agreement was made during Kim’s visit to Tokyo this week. It was the first meeting between the chiefs of the two countries’ financial regulators since 2016, a step symbolizing a thaw in diplomatic tensions.

“They agreed that sharing experiences and exchanging views on issues of mutual interest, such as climate change and digitization of financial services, would be useful,” said the FSC in a statement. “They also discussed possible areas for deepening cooperation aimed at safeguarding financial stability and fostering the financial markets of both countries.”

Kim gave an address at a forum on sustainability, hosted by Nikkei. The event was attended by Japanese Prime Minister Fumio Kishida.

As the last speaker, Kim said he hopes that the two countries cooperate on the investment in promising firms and startups with high potential.

Kim also attended the signing of the memorandum of understanding between the banking associations of the two countries, as well as the inauguration ceremony for the establishment of the Future Flow Fund, jointly invested by private financial institutions of Korea and Japan.

The fund worth 50 billion won ($36.67 million) is to be used on Japanese and Korean startups planning to enter the Japanese market.

“The Future Flow Fund is very meaningful in that it marks the first Korea-Japan collaborative startup fund,” said Kim in the speech. “I hope private sector-led collaborative projects like the Future Flow Fund spread across more industries, like banking, insurance, capital markets and fintech.”

Korea and Japan agreed in June to revive a $10-billion currency swap deal, which also signaled the thawing of long-strained ties amid rising geopolitical risks. Finance ministers of the two countries struck the deal at a meeting held in Tokyo, which was also the first dialogue between the finance ministers of the two countries in seven years.

BY JIN MIN-JI [jin.minji@joongang.co.kr]