Hana Bank and KSD Launch 'Foreign Currency Repo Simultaneous Settlement System'

Hana Bank announced the launch of the "Foreign Currency Repo Simultaneous Settlement System" in collaboration with the Korea Securities Depository. To this end, Hana Bank signed a business agreement with the Korea Securities Depository on the 29th of last month to establish the "Foreign Currency Repo Simultaneous Settlement System." Park Sung-ho, President of Hana Bank (left), and Lee Myung-ho, President of the Korea Securities Depository, are taking a commemorative photo at the business agreement ceremony.

[Asia Economy Reporter Kiho Sung] Hana Bank announced on the 12th that it has opened the 'Foreign Currency Repurchase Agreement (Repo) Simultaneous Settlement System' linked with the Korea Securities Depository.

Hana Bank explained that in response to the recent government foreign exchange regulation easing and the increase in foreign currency procurement by financial institutions due to the expansion of domestic investors' overseas stock investments, it has officially launched a system that applies the simultaneous settlement method, previously only possible in Korean won, to foreign currencies for the first time in Korea.

When settlements are made through this system, the principal settlement risk that occurred in the existing separate settlement method can be fundamentally eliminated, enabling financial institutions to procure foreign currency funds more quickly and safely through this system.

The system has been independently developed to allow financial institutions that are not members of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network to use it, creating an environment where all domestic financial institutions wishing to engage in foreign currency Repo transactions can be served. As a result, securities companies, which had fewer means of procuring foreign currency funds compared to banks, can now procure foreign currency more easily and safely.

Seongho Park, CEO of Hana Bank, stated, “Starting with the opening of this system, we will continuously create an environment where all financial institutions, including banks and securities companies, can trade stably and efficiently through the establishment of a partnership-based platform ecosystem.”