Yuan Transactions
SK C&C will enable a concurrent payment service for direct transactions of yuan and/or bond transactions with yuan in South Korea through a “Yuan Settlement System Construction” project with the Seoul branch of the Chinese Bank of Communications, SK C&C said on May 11.
SK C&C will connect the Bank of Communications’ settlement/payment system, the Bank of Korea’s financial payment network, and the Korea Securities Depository’s joint network, to enable the concurrent payment service, SK C&C said.
The real-time payment will resolve ”risks” due to a time difference, such as currency exchange rates of U.S. dollars which bridged the won and yuan in the existing system, Min Kyung-dong, a PR representative of SK C&C told Business Korea.
The People’s Bank of China appointed the Seoul branch of the Bank of Communications as a bank for yuan settlements, SK C&C said. Until then, payments with yuan had been done through Hong Kong.
Moreover, SK C&C will develop an “anti-money laundering system” that monitors suspicious yuan transactions in real time, the company said.
SK C&C will also develop an Internet banking system that will provide the banks with account lookups and transfer services, the company said.
Baek Hyung-duk, director of the strategic project sector of SK C&C, said the company’s new system is aimed at helping South Korea to be a “hub” of yuan.
It is “very rare” to make payments with yuan outside of China, Min Kyung-dong said.