Korean Won to be used in trade with ASEAN

South Korean companies will be able to make payments in Korean won to trading partners in the Association of Southeast Asian Nations (ASEAN) as early as the second half of 2024, financial sources said on January 9.

South Korean won. Photo: AFP/VNA

The new payment method aims to cut the large transaction fees charged when converting Korean won to other currencies, usually the US dollar, or vice versa, while also limiting risks associated with fluctuating exchange rates, according to a VNA correspondent in Seoul. The plan was mentioned in the 2024 economic policy guidelines released by the Ministry of Economy and Finance (MOEF) and other relevant ministries in South Korea last week. The MOEF is working to improve currency exchange regulations in the first half of 2024 to implement the plan.

“Given the fact that commercial transactions using the Korean won are rare, the new payment method shows that the won is regarded as a reliable and stable currency alongside major currencies,” a source said. Demand for the Korean won is rising in ASEAN countries amid rapidly growing trade with Korea, the source said.

Once the new payment method is implemented, Korean companies can send or receive transaction amounts in Korean won through Seoul bank branches from the respective ASEAN countries. In the long term, MOEF is also looking to expand the use of the Korean currency in trade with countries in other regions.

According to VNA

Source: http://baodanang.vn/kinhte/202401/dong-won-han-quoc-se-duoc-su-dung-trong-giao-dich-thuong-mai-voi-asean-3963786/