KTNET's
Trade Settlement System
- 8 organizations agree to set up the system including e-letters of credit

The Electronic Trade Promotion Center under KTNET(Korea Trade Network) has been able to agree with the banking sector to jointly work to set up an electronic trade settlement system by setting up the Electronic Trade Settlement Promotion Team recently.
Joining the team would include a number of nationwide banks such as Woori, Chohung Banks and the Industrial Bank of Korea, the Financial Settlement Institute, MP&T, the center and the KTNET, altogether 8 organizations, the center said.
Professor Ahn Byung-soo of Seoul Digital University will lead the team.
Banks have been invited to join the team because international trade settlement needs their international transaction network and the expertise will be lost if they were to be excluded.
The team's first work would involve the establishment of a road map in the area of international trade settlement so that it may be able to set up a system to cope with an international trade settlement environment to be created with the launch of the Electronic Trade Platform in 2007.
The team will also a guidance system for the circulation system of the electronic letters of credit to be set up in the first half of this year and for the rapidly changing international electronic trade settlement environment.
The team will play a key role in making up an internal environment and the establishment of an infrastructure for the establishment of an electronic export and import system in the banking sector.
They will also specify the role of banks and trading firms in dealing with various trade-related bills including the bill of lading and notes, in addition to obtaining cooperation with foreign banks and other international trade organizations.
Chung Yun-sei, head of the e-trade team, said work on electronic trade document depository and the establishment of the electronic letters of credit exchange management system are being worked out under the government's 3 year plan to set up an e-trade system.
KTNET, set up in 1991, has been playing a key role for the enhancement of Korea's trade competitiveness for the past 10 years through trade automation. KTNET has been providing EDI-style trade automation services to reduce trade processing time and expenses significantly for trade business circles, leading to productivity enhancement and subsequent reinforcement of competitiveness.
KTNET is also strengthening its business potential in order to realize one-stop e-trade service for domestic and overseas trade communities, including establishment of e-trade infrastructure and development of solutions, and global e-trade networking projects.
KTNET envisions; First, to provide a foundation and services that can conduct all export/import functions on a one-stop basis with any body, any time any place in the world via the Internet; Second, to provide a non-stop trade process that enables traders to process all trade transactions online from identification of business partners, business discussions, contracts, raw materials supply, and transport to customs clearance and settlement of payment; and Third, to provide a safety-secured seamless e-business foundation through linkage with e-trade and e-commerce.
For KTNET, the period between 2003 and 2006 is a take-off period. Propelled by the effects of the business strategies in the transition, KTNET makes a substantial leap in development and growth. KTNET President was presented with "Stone Tower Order of Merit" in the 7th Korea e-Biz Grand Prix.(Nov. 2003).
KTNET was given e-Asia at "2003 Asia Week" in Taiwan.(Oct. 2003),
The company opened B2B Logistics Portal Service(June, 2003).
In the transition period between 2001 and 2002, the company expanded its spread into every stratum of society, the Internet, a newly emerged communications platform, which was adopted for use as a means of commerce. nw