Finance Minister Yoo Il-ho says China is unlikely to seek a massive trade retaliation over the planned deployment of the U.S. THAAD system on the Korean Peninsula.

The minister presented the projection before the parliamentary finance committee on Monday, saying that China is expected to separate politics from the economy.

The minister said that the Seoul government is drawing up diverse scenarios over China’s reactions and producing relevant measures under different scenarios.

Yoo presented a positive view on expanding currency swaps to prepare for a possible financial crisis.

He said that South Korea and China have already agreed in principle to extend their currency swap deal, adding that negotiations are under way to produce a final agreement on details.