China, South Korea, Japan may jointly launch rescue package

Oct. 10, 2008 (China Knowledge) - China, South Korea and Japan are considering pooling their foreign exchange reserves and setting up an US$80 billion fund to cope with the fallout from the deteriorating global financial crisis led by the U.S., sources reported. 

80% of the proposed US$80 billion fund will be financed by the three countries, while the remaining to be funded by members from the Association of South East Asian Nations (ASEAN), according to sources.

Vice-ministers from the three countries were scheduled to meet in Washington in mid-October to discuss joint countermeasures to relieve the negative impact caused by the financial turmoil, the South China Morning Post reported, citing unidentified Korean government officials as saying.

Reportedly, South Korean President Lee Myung-bak proposed last Friday that finance ministers from the three countries meet and look at ways to speed up the fund to help cushion the impact of the financial turmoil that is now buffeting Asia after sweeping through the United States and Europe.

China and Japan together hold nearly US$3 trillion in foreign exchange reserves, while Korean's foreign exchange reserves hit nearly US$240 billion.