Hana Bank signed a won swap transaction with a foreign bank registered in London as a Recognised Foreign Institution (RFI).

Hana Bank said on Aug. 21 it signed the won swap transaction on Aug. 19 in London with a foreign bank that is an RFI. It described the deal as the first time a South Korean bank has signed a won swap transaction with an RFI.

The transaction is an example of Hana Bank’s London funding centre directly supplying won liquidity to won swap demand generated overseas. It is part of a move to expand won trading locally overseas following structural improvements to the foreign exchange market, including extended domestic FX trading hours and the introduction of the RFI system.

Hana Bank opened 'HANA INFINITY (London Funding Centre)' in London in July 2024 and has expanded work related to overseas won trading. In April, it also joined the London Stock Exchange Group (LSEG)'s 'SwapAgent' and built infrastructure for derivatives trading.

The London funding centre currently processes about 4,000 won remittance transactions a year. It is also expanding its trading network for foreign financial institutions and global investors.

Hana Bank plans to gradually expand the London funding centre’s scope from FX and remittances to sales of won government bonds, sales related to domestic stocks and won derivatives trading.

A Hana Bank London funding centre official said, "This transaction is meaningful in that it supplied won liquidity to real demand for won swaps occurring overseas through direct trading between RFIs." The official said, "We will raise global market participants' access to the won and support the activation of won trading."