Japan and South Korea agreed Thursday to revive a bilateral currency swap deal for the first time in about eight years, another symbolic move that highlights the fast-improving ties between the two countries.

The decision came after Finance Minister Shunichi Suzuki and his counterpart Choo Kyung-ho met in Tokyo during the Japan-South Korea finance dialogue, held for the first time since 2016.

Choo said that it was regrettable that communication between the Japanese and South Korean finance authorities had effectively ruptured “because of various reasons,” even though both are like-minded countries that share the values of liberal democracy and market economic order.

“Starting (with) today’s meeting, we hope to continue and upgrade the Japan-South Korea finance dialogue, which will be the core place to expand and strengthen bilateral economic cooperation,” Choo said at the beginning of the meeting.

To sustain the economies in the Asian region and maintain a stable financial system, “we have come to share the same recognition that we need to shore up our bilateral swap deal,” Suzuki said during a news conference after the meeting.

According to the joint statement, the two ministers agreed to resume the swap arrangement for $10 billion.

The currency swap deal was launched in 2001 in light of the Asian financial crisis in the late 1990s to enable the two countries to mutually supply foreign currencies in times of emergencies. In 2011, the total swap arrangements were expanded to $70 billion from $13 billion. But the arrangement expired in 2015 amid souring ties.

The resumption of the currency deal is a sign that bilateral relations — which were significantly strained for years due to the issue of wartime labor — are on the mend. In recent months, South Korean President Yoon Suk-yeol has made it clear that he is seeking to improve relations with Japan.

In March, Yoon visited Tokyo, the first such trip in about 12 years for a South Korean leader, and agreed with Prime Minister Fumio Kishida to revive so-called “shuttle diplomacy” in which the two countries’ leaders regularly visit each other, saying that they were opening a “new chapter” in ties.

Since then, the two nations have been making efforts to repair relations in various fields, including trade.

Japan relaxed export control measures for three critical chip manufacturing materials to South Korea in March, as Seoul withdrew its complaint with the World Trade Organization over Tokyo's restrictions.

On Tuesday, the Japanese government also decided that it will put South Korea back on its list of preferred trade partners starting July 21, reciprocating a similar move by Seoul made in April.

As bilateral relations gain momentum, Japan and South Korea are also looking to bolster cooperation in other fields including chip supply chains.