Korea Exchange Bank opened a Global Trade Finance and Remittance Center in Hong Kong last week, a first for a South Korean bank.

The center is designed to centralize the processing of trade finance and overseas remittance services to match the country’s standing at a time when Korea’s trade volume exceeds $1 trillion a year.

The new Hong Kong trade finance center will provide efficient, timely financial services necessary to grow Korea’s international trade. In addition, the Center will enable KEB to achieve greater economies of scale, contributing to improved bank profitability.

The remittance center, the other pillar of the Hong Kong operation, is also expected to provide a competitive edge in such areas as remittances to Asia and Europe. Until now, customers receiving remittances from Korea had to wait more than one business day to receive the funds due to the differing time zones and banking hours of the two regions.

To this end, KEB designated San Francisco-based Wells Fargo Bank as its strategic partner bank for trade finance and remittance services, after reaching an agreement with the American bank on relevant matters. Wells Fargo will be responsible for certain areas of the Hong Kong operation designated by KEB.

By Park Min-young  (claire@heraldcorp.com)