The South Korean government said Wednesday that it has lifted the legal hurdles to opening the won-yuan direct trade market in China later this year.
A revised local currency law allows all South Korean nationals and businesses to engage in any financial transactions in China using the local currency, including won-yuan spot trading and the settlement of accounts, according to the Ministry of Strategy and Finance.
So far, the South Korean currency had been permitted to be used only in trade payments outside the country.
The ministry said South Korea's Hana Bank and Woori Bank have been designated as the clearing banks to take charge of won-yuan settlements and payments.
The Chinese won-yuan exchange market is scheduled to start operating in June in Shanghai, a follow-up to a summit meeting between South Korean President Park Geun-hye and her Chinese counterpart Xi Jinping in October 2015.
The direct trade market in Seoul was already opened in December 2014, with its daily turnover reaching an average of $2.26 billion as of end-November last year. (Yonhap)