Kwangju Bank Launches First Deferred Overseas Remittance Service Among Regional Banks

Gwangju Bank has launched the "Term Overseas Remittance Service," the first of its kind among regional banks to support trade payment settlements for import companies. Photo by Gwangju Bank

On July 24, Kwangju Bank announced that it has launched the "Deferred Overseas Remittance Service," becoming the first regional bank to support import companies in making trade payments.

This service was introduced in response to the recent shift in trade payment trends from the traditional letter of credit (L/C) system to the telegraphic transfer (T/T) method. Under this service, Kwangju Bank remits the trade payment to the overseas exporting company on behalf of the importing company, and the importer repays the principal and interest at a predetermined maturity date.

Compared to conventional import letter of credit transactions, this service offers lower fee burdens and allows companies to set the maturity date flexibly within a maximum period of six months, enabling more flexible cash flow management according to each company's circumstances. By separating the payment and repayment dates, the service is effective in securing short-term liquidity for importers and is also expected to help maintain trust with business partners.

The service is available to importing companies (corporations and individual business owners) making trade payments. For more details, customers can visit a nearby branch or check the Kwangju Bank website.

Kim Daeseok, Head of the Foreign Exchange Business Division, stated, "In the rapidly changing international trade environment, we have launched the 'Deferred Overseas Remittance Service' as the first regional bank to provide practical support for importers' liquidity and competitiveness." He added, "Kwangju Bank will continue to expand various services to ease the financial burdens of import and export companies."

This content was produced with the assistance of AI translation services.