South Korea’s major business groups to enter the special currency remittance market

nnnRecently, South Korea’s large-scale joint venture Dongbu Group announced that its subsidiary, Dongbu Savings Bank, cooperated with Bitbeat remittance service provider Sentbe to enter the Bitcoin remittance market. According to bank managers, the two sides have signed a memorandum of understanding to jointly prepare for the fourth generation of industrial revolution in traditional savings banking. Prior to this, the South Korean government has also amended the “Foreign Exchange Act”, so that special currency remittances have been recognized by law.n
nnTranslation: Clovern
nSouth Korea’s large conglomerate, Dongbu Group, announced a partnership with Sentbe, a special currency remittance service provider, to enter the Bitcoin remittance market.n
nThe group will work with Sentbe through its savings bank subsidiary, Dongbu Savings Bank.n
nAccording to a manager of the savings bank, the two sides have signed a memorandum of understanding to prepare for the fourth generation of industrial revolution.n
nn”We have been trying to reach this kind of business alliance to prepare for the fourth generation of industrial revolution in traditional savings banking.”n
nBackground of the two sidesn
nSouth Korea’s Sentbe was awarded the Financial Technology (fintech) award in 2016 by using Bitcoin to provide foreign remittance services.n
nThrough this service, the bank customers in China, Vietnam, Japan, Indonesia and the Philippines, the remittance fee is 95% lower than through traditional banks.n
nAt the same time, Dongbu Group is a major large-scale joint venture in Korea. The Group’s main business covers production, chemical, shipping, finance and insurance products. Its subsidiary, Dongbu Savings Bank, is a member of the World Savings and Retail Banking Organization (WSBI).n
nThe bank can collaborate with many financial institutions around the world through WSBI, including Swedish banks, Sweda, Fra-Spa in Germany, Philippine Postal Savings Bank, the Indonesian National Housing Bank, , The National Savings Bank of Sri Lanka and the Government Savings Bank of Thailand.n
nKorean royal currency remittance legislationn
nThe Korean government has amended the Foreign Exchange Act so that the currency remittance is legally recognized. The amended Act entered into force on 18 July 2017.n
nAccording to the law, financial technology companies planning to provide special currency foreign exchange transfer business should register with the Korea Financial Supervisory Authority (FSS). At the same time, these financial technology companies need to comply with certain financial requirements, such as 20 billion won (about 1.77 million US dollars) of paid-up capital, and less than 200% of the debt-equity ratio.n

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