Woori Bank to Advance Import Payments for Companies, Allowing Deferred Settlement for Up to One Year

Launch of 'Woori Remittance USANCE'

Deferred Payment Without a Letter of Credit

Both Remittance and Letter of Credit Methods Available Under a Single Contract

Woori Bank is introducing a new financial product that pays import payments to overseas partners in advance, allowing domestic importers to repay the bank up to one year later. By expanding the deferred payment method, which was previously used mainly for letters of credit transactions, to remittance transactions, Woori Bank aims to alleviate funding burdens for import companies.

On September 30, Woori Bank announced the launch of 'Woori Remittance USANCE' to assist import companies with smooth payment settlement and strengthen trade finance support. Usance is a system where the bank pays the overseas exporter on behalf of the importer, and the importer repays the bank after an agreed period. While it has mostly been used in letter of credit (L/C) transactions, this new product allows usance to be used in remittance-based import transactions as well, sending funds to overseas partners without a letter of credit. Woori Bank explained that this product was developed in response to the increasing trend of remittance-type import transactions.

Domestic importers using this product can defer payment of import settlements for up to one year, thus gaining greater flexibility in fund management. Overseas exporters can benefit from quickly receiving transaction funds from the bank, improving the security of their receivables.

Unlike letter of credit transactions, this product does not require a separate document exchange process between banks, simplifying the procedures. Both advance remittance transactions (where payment is sent before goods are received) and post-delivery remittance transactions (where payment is made after goods are received) can be used. Another notable feature is that both remittance-based and letter of credit-based import transactions can be managed under a single contract, allowing companies to select their payment method according to their transaction situation.

Kang Eompil, Head of Foreign Exchange Business at Woori Bank, said, "As the ways of conducting import transactions become more diverse, the financial needs of corporate clients are also changing. The extended use of usance to remittance transactions will help ease the capital burden for importers." He added, "Going forward, we will continue to expand trade finance products and services that enhance the convenience of companies' trade dealings."

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