The RoK Ministry of Finance said in a statement that the finance ministers from all three countries had agreed on the fund at a meeting on the sidelines of the Asian Development Banks’ (ADB) annual meeting in Tashkent, Uzbekistan on May 1.

The fund dubbed “Credit Guarantee and Investment Facility” will provide "the core infrastructure need to develop bond markets in Asia," said the ministry.

Japan and China will each contribute US$200 million to the fund, while the RoK will provide US$100 million, it said.

The rest will be made up by the ADB and the Association of Southeast Asian Nations (ASEAN), which will donate US$130 million and US$70 million, respectively.

According to the ministry, the finance ministers also agreed to continue their "effective" policy coordinating for other international economic forums.

In March, the three countries and ASEAN launched a US$120-billion currency-swap agreement aimed at helping Asian economies to cope with a possible liquidity crisis.