* Sees capital flows to emerging economies boosting FX
* Says didn't mean to criticise China, South Korea on FX
* Division over FX policies seen dominating G20 meetings
* Japan to act against rapid FX moves if necessary (Adds quotes, details)
By Tetsushi Kajimoto
TOKYO, Oct 19 (Reuters) - Japan's finance minister said excessive capital flows to emerging economies are boosting their currencies and he expects G20 finance leaders to seek ways to stabilise currencies at a meeting this week in South Korea.
Yoshihiko Noda, speaking to reporters in parliament, said the international community must work together to achieve currency stability, which is essential for the world economy to recover fully from the last recession.
"Currencies will be the topic that many people will be talking about ... at the G20. I hope that good ideas will be put forward there and we will explain the present situation in Japan," Noda told a news conference after a cabinet meeting.
He reiterated that Japan would act decisively against excessive currency moves as needed, signalling his readiness to intervene to stem rises in the yen, which is on the verge of surging to a fresh 15-year high below 81 to the dollar.
Global currency strains are intensifying as financial markets factor in the prospect of the Federal Reserve cranking up the dollar printing presses to try to revive the faltering U.S. economic recovery.
Economic imbalances, the falling dollar and upward pressure on emerging market currencies are expected to dominate discussion at meetings in South Korea of G20 finance ministers from Oct. 22 and of national leaders from Nov. 11.
Noda said there was some misunderstanding about his remarks last week about Chinese and South Korean currency policies, apparently backing away from comments that called into question South Korea's leadership of the Group of 20 nations forum because of Seoul's interventions to stem the won's rise and that chided China for moving slowly on yuan reform.
"There seems to be some misunderstanding," Noda said, referring to the comments made in parliament last week. He added that he did not mean to criticise the countries' currency policies.
Noda said he had merely repeated his expectations for steady progress in Chinese yuan reform, while expecting South Korea to take a major role in steering debate on currency issues at the G20 meeting.
Noda had also insisted last week that Japan's own currency intervention on Sept. 15 was qualitatively different from South Korea's interventions. (Reporting by Tetsushi Kajimoto; Editing by Edmund Klamann)