Korea offers guidelines for RFI-K under won's internationalization vision
Korea on Wednesday announced revised rules for registered foreign institutions (RFIs) as part of the ongoing effort to make the won a freely convertible currency, the finance ministry said. The Ministry of Finance and Economy said it revised the guidelines on foreign financial institutions' foreign exchange operations and the foreign exchange transaction regulations following a public comment…
The Finance Ministry of South Korea has unveiled updated regulations governing registered foreign institutions (RFIs) as part of the government's ongoing strategy to fully convert the won into an internationally convertible currency. The Ministry has revised the guidelines surrounding foreign financial institutions' foreign exchange operations and associated transaction regulations following a public comment period and a thorough regulatory review by the Office for Government Policy Coordination.
Under these new provisions, RFIs registered with the Ministry will now be permitted to establish omnibus accounts at domestic foreign exchange banks. This development enables these institutions to settle won transactions through the Bank of Korea Won International Wire Network, thereby facilitating offshore won settlement without any time or location limitations.
To engage in offshore won business, registered foreign institutions must undergo a separate registration process with the Ministry as a Registered Foreign Institution for KRW Business (RFI-K). Institutions with this specific registration will be able to cater to clients residing outside of South Korea. This allows them to open won-denominated accounts, contributing to the broader economic integration of the won in the global financial landscape.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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