The Korea Financial Investment Association announced that with the clarification of foreign currency accounts for general currency exchange services, comprehensive financial investment business operators (hereinafter referred to as securities firms) can accelerate their preparations for implementing general currency exchange services.
The Ministry of Economy and Finance has allowed securities firms meeting certain requirements to conduct general currency exchange for customers through amendments to the "Foreign Exchange Transactions Regulations," and foreign exchange authorities and the financial investment industry have been discussing specific operational methods for general currency exchange.
While securities firms used foreign currency accounts dedicated to foreign securities investment for investment-purpose currency exchange, there were no explicit regulations regarding the foreign currency accounts to be used for general currency exchange, causing difficulties in preparing for general currency exchange operations. However, following the Ministry of Economy and Finance's authoritative interpretation last August clarifying that securities firms can use resident accounts under their name for general currency exchange, the industry can now expedite the implementation of general currency exchange services.
Securities firms are preparing to report changes in the scope of foreign exchange operations to the Ministry of Economy and Finance and to build related systems to ensure a smooth introduction of customer-facing general currency exchange services.
The introduction of general currency exchange by securities firms is expected to enhance customers' access to currency exchange and promote competition in the foreign exchange market, aligning with the Ministry of Economy and Finance's foreign exchange system reform direction aimed at resolving public inconvenience in foreign exchange transactions and establishing a competitive foundation for financial institutions. It is also anticipated to increase financial consumer benefits such as reduced fees.
The Korea Financial Investment Association and the industry will continue to strive for innovative growth in foreign exchange services and actively cooperate in expanding general currency exchange to securities firms that meet certain requirements such as the scale of foreign exchange operations.
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