South Korea has asked the United States to establish a bilateral currency swap arrangement.

The finance ministry said Sunday in a news release that various measures are being discussed to minimize the impact of its ongoing investment negotiations with the United States on South Korea's foreign exchange market.

The ministry declined to provide details, saying that it could not comment on the specifics of ongoing discussions with the United States.

A currency swap is an agreement that allows one country to deposit its own currency with another and borrow the counterpart’s currency at a predetermined exchange rate in times of need.

Seoul’s request appears to be an attempt to preempt potential turmoil in the foreign exchange market since a U.S. demand of direct investment could dramatically weaken the won if a swap deal were not in place.