North Korean Economy Watch

According to KBS:

South Korean firms doing trade with North Korea must will soon make payments only at government-designated banks.

The Unification Ministry said it will revise the law on inter-Korean cooperation and exchange to this effect. It said the measure aims to provide a greater understanding of the monetary flow of inter-Korean trade and secure transparent transactions.

The ministry has announced the qualifications a bank must meet to deal in inter-Korean trade payments and through June third, any of the 18 commercial banks in the country can apply for the designation. Two or three banks will be selected.

The revised law will also state in clearer terms the conditions and procedures relating to cross-border exchanges. It further calls for obtaining government approval when South Korean residents wish to transfer money to families in North Korea or when overseas chapters of South Korean firms seek to invest in North Korea.

The South Korean government is also seeking to gain control over remittances to families of DPRK defectors.

Read the full story here:
Designated Banks to Process S-N Trade Payments
KBS
2011-05-25

This entry was posted on Wednesday, May 25th, 2011 at 9:22 pm and is filed under Banking, Finance, Fiscal & monetary policy, South Korea. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.