South Korea’s finance ministry on Wednesday amended foreign exchange rules to create a new licensing regime for overseas institutions handling won transactions, moving ahead with plans to build an offshore market for the currency. Registered Foreign Institutions for KRW Business, or RFI-Ks, will be able to serve foreign non-residents, open omnibus won accounts at Korean foreign exchange banks and settle transactions through the Bank of Korea’s international won payment network.

The revised rules also allow RFI-Ks to borrow won without limit from Korean banks when needed to complete settlements and exempt most won-denominated capital transactions between non-residents from reporting requirements,