Hana Bank Executes First Won Swap With RFI

On August 21, Hana Bank executed its first won swap transaction with a foreign bank, a Registered Foreign Institution (RFI) based in London, marking a significant milestone for the domestic bank. This transaction represented the first time Hana Bank's London Money Center had provided liquidity in response to overseas demand for won swaps.

The RFI refers to an overseas financial institution registered with the Ministry of Finance and Economy, allowing it to directly participate in the domestic foreign exchange market. The government introduced this system last year to enhance the accessibility of won transactions for foreign banks and overseas branches of domestic banks, promoting the globalization of the domestic foreign exchange market.

Hana Bank, in preparation for its July opening of the HANA INFINITY (London Money Center) in the bustling London financial hub, had also secured a SwapAgent membership with the London Stock Exchange Group (LSEG) for domestic commercial banks in April. Looking ahead, Hana Bank aims to broaden the London Money Center's business scope, including won-denominated government bond and domestic stock sales, as well as won derivatives trading.

The strategy is to establish London as a core hub for global won business, providing comprehensive access to Korean financial products for overseas investors. The Hana Bank London Money Center's official emphasized the significance of this transaction, highlighting its role in supplying won liquidity through a direct transaction between RFI institutions and its commitment to actively enhance global market participants' access to the won and stimulate won transactions.