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. Last Updated: 07/27/2016

Seoul Acknowledges Need for Aid from Japan

SEOUL, South Korea -- Dashing any early hope for controlling financial turmoil, South Korea's currency fell 10 percent in half an hour of trading Thursday, one day after the country unveiled an emergency bailout package.


South Korea acknowledged that it could not resolve its trouble without outside help, and asked Japan to help persuade its banks to roll over maturing short-term loans to South Korea.


It also asked the United States to help dispel "negative market sentiments" about South Korea. But one official at the Ministry of Finance and Economy, speaking on condition of anonymity, said the U.S. response "fell short of our expectations."


"Japanese help is vital," Finance and Economy Minister Lim Chang-ryul told repoprters. "We will ask Japanese lenders to roll over short-term loans."


On Wednesday, South Korea unveiled a string of measures intended to restore the confidence of foreign investors and prevent the country from becoming the next Asian victim of financial free falls.


In Washington, U.S. Treasury Secretary Robert Rubin, without offering a clear-cut endorsement, urged South Korea to "move forward quickly to address the present challenges, in particular with forceful and effective action to strengthen the financial system."