Japan


	May 11, 2002	atimes.com

Japan

Won-yen transactions up ahead of World Cup

TOKYO - South Korea's efforts to co-host the 2002 World Cup soccer finals with Japan have increased the currency-exchange business between the Korean won and the yen in the Japanese financial sector, financial sources said on Thursday.

In a bid to benefit Japanese and foreign tourists traveling between South Korea and Japan for the finals, major Japanese banks with active international operations began the money-exchange service as early as last month. The Bank of Tokyo-Mitsubishi and Mizuho Bank began exchanging Korean currency on April 1, while Sumitomo Mitsui Banking Corp and UFJ Bank joined the fray later.

Last November, the South Korean government took steps to ease its foreign exchange regulations to allow the Korean currency to be exchanged overseas. The measure was obviously aimed at rendering support for successful management of the May 31-June 30 soccer competition and the Busan Asian Games in September.

Organizers for the soccer world's premier event expect 300,000 soccer fans to visit the co-hosts during the finals, meaning currency exchange between the yen and won will be in strong demand.

The move was also intended to make it easier for Japanese or other foreign travelers to exchange yen for won before coming to South Korea and sell their won for yen upon their return. In line with the measures, three South Korean banks - Korea Exchange Bank, Hanvit Bank and Hana Bank - have supplied 11.9 billion won (US$9.27 million) to Japan, China and Southeast Asian countries since early April. The three plan to export another 50 billion won to the region at a later stage.

Six Japanese banks, including Tokyo-Mitsubishi, have formed agreements with the three South Korean banks to secure a stable supply of Korean notes for the service.

Previously, the money-exchange service was limited to South Korean banks operating in Japan and Japanese regional financial institutions in cities where direct flights to South Korea are available.

The Tokyo branch of the Korea Exchange Bank has set about the service of delivering Korean currency to Japanese houses and workplaces nationwide. A customer can place an order of a maximum of 10 sets of Korean notes in denominations of 10,000 won, with one set comprising 20 notes.

The Japanese banks mainly offer the service at their airport branches. Still, Tokyo-Mitsubishi handles won exchanges at 39 branches nationwide and all its foreign exchange booths, and Sumitomo Mitsui provides the service at some of its branches in Tokyo and Hyogo Prefecture.

Last year, 2.38 million South Koreans visited Japan, the second-largest group after Americans. "We are meeting a rising demand for currency exchange as people from both countries increase cross-visits for business and tourism," an official from a Japanese bank said.

The official also said the Japanese financial sector is expected to see a rise in demand for the Korean won in anticipation of the Asian Games in the South Korean port city of Busan in September.

(Asia Pulse/Yonhap)