S.Korea plans deriv clearing house in 2010

* Credit default swap, currency rate swap clearing may follow

* Considering reduction in stock transaction fees

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By Kim Yeon-hee

SEOUL, Nov 4 (Reuters) - South Korea's stock market operator is planning to launch a clearing house for over-the-counter interest rate swap trading next year in a first step to reduce risks from derivative products, an executive said on Wednesday.

Lee Chang-ho, who leads the Korea Exchange's management strategy division, told Reuters in an interview that the government viewed central counter-party service for derivatives as a major task, as the host country of the G20 summit in 2010.

"Once winning government approval, we will start offering central counter-party service for interest rate swaps and then expand it into credit default swaps (CDS) and currency rate swaps

(CRS) and commodity derivatives," said Lee, who is also acting CEO of the bourse operator.