SEOUL Jan 6 South Korea said on Friday that it will monitor the situation over the status of currency swap talks with Japan, responding to comments from Tokyo that the negotiations had been suspended.
Japan's chief government spokesman earlier said that it has suspended talks on a new currency swap agreement due to South Korea's decision to keep a monument to victims of Japan's wartime sexual slavery near the Japanese consulate in Busan.
A South Korean finance ministry official in charge of foreign exchange policies declined to comment further on Japan's decision.
The two nations agreed last August agreed to start talks on a new currency swap to bolster defenses against global financial uncertainties.
(Reporting by Shin-hyung Lee, Cynthia Kim; Editing by Kim Coghill)
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