Woori Bank to Pay Import Bills Upfront

[Financial News] Woori Bank said on the 30th that it will launch a new product, Woori Remittance Usance, to facilitate payment of import bills for importing companies and strengthen support for trade finance.
Usance is a payment method in which a bank first pays an overseas exporter on behalf of an importing company, and the importing company repays the bank after the agreed period. It has traditionally been used mainly in Letter of Credit (L/C) transactions. Woori Remittance Usance combines the advantages of usance with import transactions settled by remittance, in which payments are sent directly to overseas business partners without an L/C.
Using the product, domestic importing companies can defer payment of import bills for up to one year, giving them greater flexibility in managing their funds. Overseas exporting companies can receive payments quickly, improving the stability of payment collection.
Unlike conventional L/C transactions, the product does not require separate document-exchange procedures between banks, making it easier to use.
Kang Eom-pil, head of the Woori Bank Foreign Exchange Division, said, "As import transaction methods have diversified recently, the financial needs of corporate customers have also changed." He added, "Since usance can now be used for remittance transactions as well, it will help ease the financial burden on importing companies."

[email protected] Ye Byeong-jeong Reporter