This handout picture taken on June 29, 2023 and released by Japan's Ministry of Finance shows Japanese Finance Minister Shunichi Suzuki (2nd left) and his South Korean counterpart Choo Kyung-ho (2nd right) holding a meeting in Tokyo. The two sides decided to revive a $10 billion currency swap deal. (JAPAN'S MINISTRY OF FINANCE / HANDOUT VIA AFP)

SEOUL - South Korea and Japan on Thursday agreed to resume their bilateral currency swap deal for three years, according to the South Korean Ministry of Economy and Finance.

Under the agreement, South Korea will be allowed to exchange $10 billion worth of its domestic currency for the equivalent amount of the greenback owned by Japan.

Japan can swap $10 billion worth of its local currency for the corresponding amount of the greenback owned by South Korea.

The South Korean ministry said the currency swap agreement with Japan was resumed after an eight-year hiatus.

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Except for the deal with Japan, South Korea reached nine currency swap contracts worth more than $138 billion.