South Korea's Ministry of Economy and Finance amended its foreign exchange rules to establish the Registered Foreign Institution for KRW Business regime, or RFI-K, enabling qualifying foreign financial institutions to provide offshore KRW services to foreign nonresidents. The measure implements the offshore settlement component of the KRW Internationalization Roadmap and allows registered institutions to open omnibus accounts with domestic foreign exchange banks and settle transactions through the Bank of Korea KRW International Settlement Network. RFI-K institutions may offer KRW accounts, transfers, investments and lending transactions, but cannot serve foreign banks or other foreign financial institutions with deposit-taking functions. The amendments permit unlimited KRW overdrafts from domestic banks for settlement support, exempt KRW-denominated capital transactions between nonresidents from reporting except for domestic real estate transactions, and raise the exemption threshold for KRW borrowing reports from KRW 30 billion to KRW 100 billion. Institutions must verify customers’ nonresident status and report monthly transaction information to the Bank of Korea, while authorities may restrict their KRW funding, operations, assets and liabilities for prudential purposes.
2026-09-16Ministry of Economy & Finance (South Korea)
South Korea's Ministry of Economy and Finance introduces RFI-K regime for offshore KRW settlement
South Korea's Ministry of Economy and Finance introduced the RFI-K regime, allowing registered foreign financial institutions to provide offshore KRW services and settle through domestic omnibus accounts and the Bank of Korea’s international KRW network. The rules ease settlement funding and capital transaction reporting while requiring customer verification, monthly transaction reports and compliance with prudential controls.