Standard Chartered aims to foster S. Korea as renminbi hub

British banking group Standard Chartered aims to foster South Korea as the hub for renminbi internationalization amid the Chinese currency's increasing clout in the global market, its board chairman said in an interview.

"If the global economy is to grow successfully in the future, currency is going to be an important part of that. That is why we believe the internationalization of the renminbi is going to be part of the economic story," John Peace told Yonhap News Agency in an Oct. 23 interview at the group's Seoul headquarters.

"We continue to see significant growth in the internationalization of the renminbi as more and more transactions in the future will be denominated in the renminbi. We're going to do everything we can to make Korea the hub," he said.

Earlier this year, South Korean President Park Geun-hye and her Chinese counterpart, Xi Jinping, agreed to launch a won-yuan direct trading market, a move aimed at reducing their heavy dependence on the U.S. dollar.

Peace underlined the importance of the company's shift to digital banking while slimming down its brick-and-mortar channels.

As part of cost-cutting measures, the banking group's Korean unit is in the process of closing down up to 50 branches nationwide by the end of the year, while expanding mobile banking platforms.

"Banking lends itself perfectly to digitization. I can't think of a better industry that utilizes the use of technology."

"We're investing significantly in it. This is about supporting customers and clients better. It's an enabler," said the British businessman, who himself started out as a tech entrepreneur after attending the Royal Military Academy Sandhurst, the British institution for training army officers.

In 1980, Peace helped found CCN Systems, which specialized in credit scoring techniques. It later went on to become Experian, a global information services provider focusing on data and analytical tools.

The board chairman, who also doubles as the chairman of luxury fashion house Burberry, said Asia's fourth-largest economy remains an important market for the company despite weak consumption as there are "many affluent people who appreciate quality products."

The British luxury brand is set to open a new outlet in the posh Seoul district of Gangnam next year, Peace said, adding he gave an approval for the construction plan during his visit. (Yonhap)