SEOUL, March 29 (Reuters) - South Korea’s central bank said on Sunday it will draw on its new currency swap with the U.S. Federal Reserve to provide $12 billion of U.S. dollar funding to local banks via auctions on March 31.

The Bank of Korea will auction the dollars for seven-day, and 84-day terms at 25 basis points over the overnight index swap rate, it said in a statement.

The Fed said on March 19 the BOK is one of nine central banks it will sign new dollar swap lines with in a coordinated action to prevent the coronavirus epidemic from causing a global economic rout.

The agreement with South Korea is a $60 billion bilateral currency swap facility for at least six months.

The BOK said it will hold additional auctions to inject dollar liquidity if needed. (Reporting by Cynthia Kim, Yena Park; Editing by Simon Cameron-Moore)