Korea's Financial Telecommunications and Clearings Institute (KFTC) which is responsible for payments clearing and funds transfers in the country, is installing Fundtech's PAYplus for CLS software.
PAYplus for CLS enables settlement members to process their own transactions as well as to offer FX settlement services to user members and third parties.
KFTC will use the software as the basis of its CLS utility system which will be used by Korean banks for foreign exchange (FX) transactions when the Korean Won goes live with CLS in November 2004.
Banks will link directly to the hosted service to process FX transactions through PAYplus for CLS. Fundtech says providing access to CLS through a utility enables banks to share the costs of CLS connectivity and operations. The Korea Exchange Bank (KEB) and Kookmin Bank have signed as CLS settlement members and will provide third party CLS services for the remaining 17 Korean banks.
MinJae Kim, CLS project manager from KFTC says: "It's essential that the Korean Won participates with CLS, to help us strengthen our position in domestic and international markets."
KFTC is the 20th client win for Fundtech's PAYplus for CLS.