Domestic bank branches in other countries contribute to rise
As South Korean banks expand overseas and local banks in several countries begin to handle the Korean won, travelers and businesspersons will find it much easier to convert Korean won into other nations’ currencies. The Ministry of Finance of Economy said on July 28 that local bank branches in Manila, Tokyo, and Paris are beginning to exchange the Korean won into other currencies. Japan’s Smimoto-Mitsui Bank began converting the won early this month and Security Bank of the Philippines plans to start the operation from July 31. Ahead of this, France’s largest money transfer firm, Travelex, started exchanging Korean currency from July 4. Overseas branches of domestic banks have expanded foreign exchange with the Korean won into 14 areas of the United States, including New York and Los Angeles, as well as Hong Kong, Paris, and Manila. This follows government measures to expand such exchange. From the second half of this year, the Korean currency will be convertible in Vietnam, Australia, and the U.K.Overseas, Korean currency is mainly converted into travel money by tourists. But, in the case of duty-free shops in China, Japan, and Southeast Asian nations, foreigners can buy goods directly with Korean currency. The amount of South Korean currency sent overseas for the purpose of exchange jumped to 153.2 billion won (160 million USD) last year, compared with 59.4 billion won in 2003.
