KEB Hana Bank, Woori Bank get Shanghai trading rightsKEB Hana Bank and Woori Bank will serve as clearing banks for direct trading between the won and yuan at their local branches in Shanghai, the Bank of Korea announced Tuesday.
All four commercial banks, which include Kookmin Bank and Shinhan Bank, have been competing for the opportunity.
“The decision was made based on the applicants’ workforce, professionalism on foreign exchange, stabilization of settlements and business plans,” the central bank said in a statement.
The two banks will start financing the yuan, transacting yuan-denominated bonds and hedging from June.
“As a representative clearing bank, we will play a significant role on behalf of the government to smooth operations of the won-yuan market,” an official at KEB Hana Bank said in a press release.