As early as the second half of the year, domestic companies will be able to settle export and import payments in Korean won when trading with some ASEAN (Association of Southeast Asian Nations) countries.
According to the Ministry of Economy and Finance on the 9th, the government is in the final stages of negotiations with ASEAN countries to introduce a system that allows export and import payments to be settled in Korean won.
One week before the Lunar New Year holiday, on the 16th, cash transport personnel are conducting the release of Lunar New Year funds to be supplied to commercial banks at the Bank of Korea Gangnam Headquarters in Gangnam-gu, Seoul. Banknotes such as 50,000 won and 10,000 won bills, bundled in stacks of 1,000, are wrapped in plastic and transported to various regions. Photo by Joint Press Corps
Since last year, the government has been negotiating to introduce a won settlement system with Southeast Asian countries such as the Philippines and Vietnam, with Indonesia known as the most promising candidate among them.
The Ministry of Economy and Finance plans to start a pilot project targeting some ASEAN countries from the second half of the year and then expand it.
Once the won settlement system is introduced, companies will be able to settle export and import payments in Korean won through won accounts at ASEAN banks opened with domestic financial institutions, minimizing exposure to exchange rate fluctuation risks when dealing with foreign companies and reducing dollar exchange costs.
The government also announced its intention to introduce the won settlement system for export and import payments within the year in the '2024 Economic Policy Direction' released on the 4th.
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