Hana Bank Completes Won Swap Transaction in London

Hana Bank has become the first domestic bank to complete a won swap transaction with an overseas foreign exchange business institution (RFI) in London. This transaction marks the first instance where a local funding center directly supplied liquidity in response to actual demand for won swaps occurring overseas, addressing the overseas demand for won through direct transactions between RFI institutions. RFI refers to foreign financial institutions registered with the Ministry of Economy and Finance to participate in the domestic foreign exchange market, including foreign bank branches and domestic banks' overseas branches. The RFI system was introduced to enhance the accessibility of won for foreign financial institutions and plays a role in expanding the participation scope of the domestic foreign exchange market. Hana Bank plans to open the London Funding Center (HANA INFINITY) in July 2024 to expand won transactions and overseas won business. Currently, Hana Bank processes approximately 4,000 won remittance transactions annually in London, and this won swap transaction indicates a trend of expanding remittance-centered won operations into derivative transactions. The won swap is a foreign exchange and derivative transaction that reflects won liquidity, foreign currency procurement conditions, and interest rate terms, with funding environment conditions included in the transaction terms. Hana Bank plans to expand the operations of the London Funding Center to include sales related to won government bonds, domestic stock trading, and won derivative transactions.

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