Finance Minister Hiroshi Mitsuzuka welcomed the agreement that Asian financial officials reached Wednesday on a new framework to strengthen financial stability in the region.

Speaking to reporters, Mitsuzuka said he expects the agreement to create a new financing arrangement to supplement the funding capacity of the International Monetary Fund, which will help stabilize Asian markets.

Officials at the Finance Ministry said the establishment of a "cooperative financing arrangement" was basically in line with the type of mechanism that Japan and other Asian countries had wanted. "Of course there were compromises along the way, but the basic framework (of what we wanted) is there," a senior official said.

Initially, Japan and many Asian economies had wanted to set up a fund to deal with potential currency instability in the region, but faced opposition from other nations such as the United States, which stressed the need for any new framework to be linked with the IMF to prevent any confusion.

In the meantime, Mitsuzuka welcomed the South Korean government's efforts Wednesday to stabilize its financial markets, saying the steps are a clear message that authorities are determined to reform the nation's financial sector.

In a statement, Mitsuzuka added that growth in South Korea has been picking up this year and that the country's economic fundamentals are improving. He added that he expects the latest measures to contribute to the stabilization of markets and secure growth in the mid- to long-term.