Woori Bank has obtained licences from British financial authorities needed for client-facing derivatives business and securities management.

Woori Bank said on June 9 that its London trading centre received licences from the UK's Financial Conduct Authority and the Prudential Regulation Authority on May 29.

Woori Bank began work on establishing the London trading centre in January last year to improve foreign investors' access to South Korea's foreign exchange and capital markets and to diversify its global earnings base. After submitting an application to British financial authorities in July last year, it received final approval about 10 months later.

The London trading centre will serve as a hub to attract foreign investment in won-denominated assets. Woori Bank plans to support package transactions that combine investment in won-denominated government bonds with currency hedging for foreign investors in London's financial market, based on its bond management function.

It also plans to provide foreign exchange and interest-rate derivatives services to South Korean companies operating locally and others.

To ensure stable operations, Woori Bank has set up a job system separating front, middle and back offices, along with risk monitoring standards. It plans to begin full operations this month after completing internal procedures.

A Woori Bank official said, "The licensing of the London trading centre is a starting point for creating an environment in which foreign investors can smoothly invest in domestic won assets." The official added, "We will broaden our non-interest income base by linking the local capital market with the domestic financial market."