Hana Bank expands foreign exchange presence, completes first Won swap with overseas institution

Hana Bank announced it has successfully executed its first Korean Won swap transaction with a foreign financial institution in London. This landmark deal signifies the first instance of a domestic financial institution directly providing Korean Won liquidity to an overseas Registered Foreign Institution (RFI).

The RFI framework, established by financial authorities, allows foreign companies registered with them to directly participate in South Korea's foreign exchange market. This system aims to enhance foreign investors' access to the Korean Won and promote the sophistication of the foreign exchange market. Institutions under this category include major U.S. and European financial firms, as well as overseas branches of domestic banks.

This derivatives transaction, facilitated by Hana Bank's London funding center, represents the initial case of supplying funds in response to actual demand for Korean Won swaps formed overseas. It is a strategic step that aligns with the Bank of Korea's ongoing initiatives to reform the foreign exchange structure and open the Won market, including extending trading hours and establishing the RFI system.

The expansion of practical Won trading infrastructure in overseas markets is a key outcome of this initiative. By engaging directly with foreign institutions, Hana Bank is actively contributing to the internationalization of the Korean Won and the development of global financial markets.