From left: Song Ji-taek, head of innovative services at BGF Retail and U Fintech Hub CEO Lee Jae-pyo pose for a photo after signing a partnership deal to set up currency exchange service at CU stores. (BGF Retail)
CU provided details Thursday on plans to allow foreign currency exchange at its convenience stores early next year.
BGF Retail, the operator of the convenience store brand, has signed a partnership with a local fintech startup U Fintech Hub, which provides a small overseas remittance service, in a step to launch foreign currency exchange service at its local branches, they said.
Under the deal, the retail giant will receive technical support from the fintech firm to develop the service platform, while preparing for a joint patent application for the business model, officials said.
The move came after the Ministry of Economy and Finance revised foreign exchange transactions regulations earlier this month to enable people exchange the Korean won for foreign bills at automated teller machines in convenience stores.
The 24-hour-service will be officially launched within the first quarter next year, they added.
The company will also introduce the currency exchange service for foreign visitors to the country, whereby they can withdraw money from their bank accounts converted into Korean currency at ATMs in CU stores.
“There is a growing trend of financial services entering convenience stores following in line the authorities’ deregulatory drives. CU is striving to expand its platform business by adopting digital finance services,” said BGF Retail’s head of innovative services Song Ji-taek.
By Choi Jae-hee (email@example.com