Yonhap News, a Korean-language wire service, reported today that the South Korean government has revised currency control law in order to allow the direct trade of South Korean Won and Yuan. The Korean Government is expecting this move will increase trade, while allowing the diversification of foreign currency holdings.
Yonhap notes, in part, that:
“The [M]inistry [of Strategy & Finance] said South Korea’s Hana Bank and Woori Bank have been designated as the clearing banks to take charge of won-yuan settlements and payments. The Chinese won-yuan exchange market is scheduled to start operating in June in Shanghai, a follow-up to a summit meeting between South Korean President Park Geun-hye and her Chinese counterpart Xi Jinping in October 2015. The direct trade market in Seoul was already opened in December 2014, with its daily turnover reaching an average of $2.26 billion as of end-November last year.”
We will be writing, over the next couple of week about revisions to Korea’s Currency Control Laws. Please check back to blog.
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Sean Hayes may be contacted at: [email protected] Sean is co-chair of the Korea Practice Team at IPG Legal. He is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only two non-Korean lawyers as a Top Attorney by AsiaLaw. Sean is known for his proactive New York-style street-market advice and his aggressive and non-conflicted advocacy. Sean works with some of the leading retired judges, prosecutors and former government officials working in Korea.
Sean’s profile may be found at: Sean C. Hayes
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