Japan’s public broadcaster NHK reports that the Japanese government has decided not to extend its currency swap accord with South Korea if Seoul doesn't request an extension.

Quoting an official at Japan’s Finance Ministry, NHK reported that the Japanese government first considered the extension of the currency swap at the request of South Korea.

Former Japanese Finance Minister Jun Azumi hinted at a possible suspension of the currency swap accord with South Korea, following South Korean President Lee Myung-bak’s landmark visit to the Dokdo islets on August tenth.

South Korea and Japan increased the size of their bilateral currency swap pool from 13 billion U.S. dollars to 70 billion dollars in October last year. The currency swap agreement is set to expire on October 31st.