Woori Bank's London trading center signs first derivatives deal with local company
In short
Woori Bank said its London Trading Center concluded its first derivatives transaction with a local company on Sept. 29, providing a 70 million pound loan alongside an interest rate swap of the same size. The bank said it hedged the interest-rate risk directly in the London financial market through its own trading book, which it called a first for a South Korean commercial bank. No counterparty name, swap pricing or maturity was disclosed.
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Woori Bank said its London Trading Center concluded its first derivatives transaction with a local company on Sept. 29, pairing a 70 million pound loan with an interest rate swap of the same size. The bank said the transaction was arranged in cooperation with its London branch and announced the deal on Oct. 5. [ 1 , 2 , 3 ]
Woori Bank said the swap converts the interest burden on a floating-rate loan into a fixed rate. It said it hedged the interest-rate risk from the transaction directly in the London financial market by booking it in its own trading book, and described this as the first case of a South Korean commercial bank hedging a derivatives deal signed with a company in London through its own book. [ 2 , 3 ]
The bank said it prepared trading infrastructure from the center's establishment stage, upgrading the integrated trading system used at its head office into a global operating model so that it could also be used in London. [ 2 , 3 ]
Seoul Economic Daily reported that the London Trading Center was set up in June 2025 to secure new revenue sources. It handles proprietary trading in foreign exchange, securities and derivatives, as well as customer business such as currency exchange and currency hedging, the outlet said. [ 3 ]
Neither report named the local company or disclosed the pricing, maturity or other terms of the swap. The account of the transaction comes from Woori Bank's announcement. [ 2 , 3 ]
Why it matters
The transaction is small, but it is the first test of whether Woori Bank can run derivatives risk from an overseas trading hub instead of only from Seoul, which the bank presents as the purpose of the London center. The bank said the center was created to secure new revenue sources, so how much cross-border trading business it generates is the measure to watch. Because no counterparty and no terms were disclosed, the scale of that business cannot yet be assessed.
Key facts
- Woori Bank said its London Trading Center concluded its first derivatives deal with a local company on Sept. 29 and announced the transaction on Oct. 5. [ 1 , 2 , 3 ]
- Woori Bank said the transaction was a 70 million pound loan to the local company arranged with its London branch, with an interest rate swap of the same size concluded at the same time. [ 2 , 3 ]
- The bank described an interest rate swap as a transaction that converts the interest burden on a floating-rate loan into a fixed rate. [ 2 , 3 ]
- Woori Bank said it hedged the interest-rate risk from the transaction directly in the London financial market by booking it in its own trading book, which it called the first such case among South Korean commercial banks. [ 2 , 3 ]
- The bank said it upgraded the integrated trading system used at its head office into a global operating model so it could be used in London, and that it built trading infrastructure from the center's establishment stage. [ 2 , 3 ]
- Seoul Economic Daily reported the London Trading Center was established in June 2025 to secure new revenue sources and handles proprietary trading in foreign exchange, securities and derivatives as well as customer business such as currency exchange and hedging. [ 3 ]
Confirmed by several sources
- Woori Bank announced that its London Trading Center concluded a 70 million pound loan to a local company together with an interest rate swap of the same size, arranged in cooperation with its London branch. [ 2 , 3 ]
- Woori Bank said it hedged the interest-rate risk from the deal itself in the London financial market through its own trading book, describing it as a first for a South Korean commercial bank. [ 2 , 3 ]
- Woori Bank said it upgraded its head-office integrated trading system into a global operating model so it could be used in London. [ 2 , 3 ]
Still unclear
- The identity of the local company that signed the derivatives deal. Neither Yonhap nor Seoul Economic Daily named the counterparty.
- The pricing, maturity and other terms of the interest rate swap, and whether the 70 million pounds refers to the loan, the swap notional or both. The documents give only the size of the loan and say the swap was of the same size.
- Whether the transaction has been confirmed independently of the bank. The details come from Woori Bank's own announcement as reported by the outlets.
What local media are saying
Timeline, local time
- Woori Bank says its London Trading Center concluded its first derivatives deal with a local company on Sept. 29. [ 1 , 2 ]
- The bank gives the details: a 70 million pound loan to the local company with an interest rate swap of the same size, and the interest-rate risk hedged through its own trading book in London. [ 2 ]
- Seoul Economic Daily reports the deal and adds that the London Trading Center was established in June 2025 and handles foreign exchange, securities and derivatives business. [ 3 ]