Woori Bank launches 'Woori Usance' to let importers defer payments by up to a year

Woori Bank said Wednesday it is launching "Woori Usance," a product designed to help domestic importing companies manage their payment obligations.

A usance arrangement allows a bank to pay an overseas exporter upfront on behalf of an importing customer, with the importer repaying the bank after an agreed period. The mechanism has traditionally been used in letter-of-credit transactions.

"Woori Remittance Usance" extends that model to remittance-based import transactions — deals in which payment is sent directly to an overseas counterpart without a letter of credit. The product was developed in response to the growing prevalence of remittance-based imports.

Domestic importers using the product can defer payment by up to one year, while overseas exporters receive funds promptly, improving the reliability of their collections.

Unlike conventional letter-of-credit transactions, the product requires no separate document exchange between banks. It is available for both advance-payment transactions, where funds are sent before goods are received, and deferred-payment transactions, where payment follows delivery.

"As import transaction methods diversify, the financial needs of our corporate customers are evolving as well," said Kang Eom-pil, head of Woori Bank's foreign exchange business division. "Now that usance is available for remittance transactions, we expect it will ease the financial burden on importing companies."

Last month, Woori Bank joined the government in selecting 45 mid-sized companies for its "Rising Leaders 300" corporate financial support program.