A 14-year-old currency swap accord between Japan and South Korea will not be renewed when it expires later this month, the Bank of Korea said Monday, amid souring bilateral ties.

The $10 billion agreement, originally set up in 2001 and aimed at helping tide one another over financial crises, will end February 23, the  central bank said in a statement.

At the same time, both sides have agreed to cooperate in "an appropriate manner as the need arises", it added.

Over the years, the two countries routinely adjusted the size and details of the agreement, which expanded to as much as $70 billion in 2011 after a series of global crisis, including the collapse of investment bank Lehman Brothers and the eurozone debt crisis.

The swap ceiling was slashed the following year as bilateral ties went into a downward spiral after a long-running territorial row flared up and exacerbated other long-standing historical disputes.