Kim Byung-hwan asks banks to review corporate foreign currency settlement and maturity adjustment

As the exchange rate soared, Kim Byung-hwan, chairman of the Financial Services Commission, asked banks to actively consider ways to flexibly adjust corporate foreign currency settlements and foreign currency loan maturities.

Chairman Kim made the request to the five major commercial banks and state-run banks at a meeting to check the corporate financial situation held at the Federation of Banks in Jung-gu, Seoul today.

Financial authorities say adjusting foreign currency settlements and foreign currency loan maturities will reduce the burden on companies by eliminating the need to raise foreign currency at higher exchange rates at the end of the year, and contribute to easing the supply and demand burden on the foreign exchange market and stabilizing the exchange rate.

When a company opens an import letter of credit to purchase raw materials, the opening bank pays the exporter first, and the company is obliged to pay the bank after a certain period of time.

As a result, the Financial Services Commission explained that when the payment date returns, companies will face demand for foreign currency purchases due to their payment obligations.