The federation handed down the punishment
following an extraordinary meeting late on Tuesday.
Seto, the reigning world champion in the men's 200 and 400m
individual medley, resigned as captain of Japan's Olympic swim
team last month after admitting to the affair.
"How can I apologise? I have been asking myself if I can, but I
think my apology is to continue swimming, restoring the trust of
my family, who have been deeply hurt by my irresponsible
behaviour," sports daily Hochi Sports quoted him as saying.
"I would like to seriously face swimming with the determination
to start over so that my family and everyone will recognise me
as a swimmer again. I’m really sorry,” added Seto, who a bronze
medal at the Rio Olympics in 2016.
The scandal has tarnished Seto's reputation and he has already
agreed to sever ties with sponsor All Nippon Airways.
(Reporting by Jack Tarrant; Editing by Peter Rutherford)
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