S. Korea offers guidelines for RFI-K under won's internationalization vision

The South Korean government has announced revised guidelines for registered foreign institutions (RFIs) as part of the country's efforts to internationalize the won currency. The Ministry of Finance and Economy revised the rules on foreign financial institutions' foreign exchange operations and transaction regulations following a public comment period and regulatory review by the Office for Government Policy Coordination.

Under the new guidelines, RFIs will be able to open omnibus accounts at domestic foreign exchange banks and settle won transactions through the Bank of Korea Won International Wire Network, enabling offshore won settlement without time or location constraints. Registered foreign institutions wishing to conduct offshore won business must separately register with the finance ministry as an RFI-K, allowing them to serve clients not residing in South Korea and open won-denominated accounts for remittances, investments, and lending and borrowing transactions.

The government will conduct necessary reviews of the institutions' financial soundness and closely monitor their transactions in cooperation with the central bank.

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