Japan-South Korea Currency Swap Poised to Lapse Amid Tension

Japan and South Korea said they will let a $57 billion expansion of a currency-swap agreement expire on Oct. 31, amid tensions between Asia’s second and fourth-biggest economies over disputed islands.

Japan’s Finance Minister Koriki Jojima told reporters in Tokyo that the extra money was now “unnecessary,” leaving a $13 billion deal in place. The Bank of Korea said separately that the decision reflects the nation’s “improved resilience to external shocks.”