The office of President Yoon Suk Yeol welcomed the resumption of a currency swap deal between South Korea and Japan on Thursday, saying it shows the two countries' relationship is improving also in the financial sphere.

The US$10 billion currency swap deal was agreed between Finance Minister Choo Kyung-ho and his Japanese counterpart, Shunichi Suzuki, in Tokyo earlier in the day, restoring an arrangement that was terminated in 2015 amid strained bilateral ties.

"The resumption of the South Korea-Japan currency swap is meaningful progress that shows the bilateral relationship, which has quickly recovered in the security and industry sectors following the South Korea-Japan summit in March, is also being restored in the financial cooperation sector," presidential spokesperson Lee Do-woon said during a press briefing.

Lee also said the agreement signifies the extension of advanced economies' foreign exchange liquidity safety net to South Korea's foreign exchange market. (Yonhap)