1

Opening Remarks

Youngsu Sung

NMG/NUG Chair, KEB Hana

Michael Cheung,

Head of North Asia, Asia Pacific, SWIFT

2

Inclusion &

Modernisation

3

4

5

6

7

SWIFT 2020 – Strategic priorities

Messaging

Software & Connectivity

Shared

Services

Many-to-Many Market

Infrastructures

CORE

COMPLIANCE

MIs

8

SWIFT 2020 – Strategic priorities

Messaging

Software & Connectivity

Shared

Services

Many-to-Many

Market

Infrastructures

Global & Key Clients

Small & Medium Banks

Investment Managers

Custodians & Investment Banks

Corporates

Funds ecosystem

RTGS and

Central Banks

Real-Time Payment

Systems

Central Securities

Depositories

FCC Roadmap : Toward three inter-connected Utilities

Sanctions Analytics/AML KYC

Interconnected Utilities leveraging commonalities and data between the products & services

Financial Crime Compliance Utility

Comprehensive

Service offering

e.g. • Transaction

screening • Sanctions Testing • List Management • Name/Client

Screening

e.g. • KYC Registry • KYC Market Place

e.g. • Compliance Analytics

(evolving toward Bank-to-bank monitoring)

• FATF 16

Hosted services Modular : No big-bang No shift of liabilities

9

Translating S2020 to SWIFT APAC Priorities

Trends

Renewal

• Fighting financial crime, monitoring & control, compliance

recommendations. • FATF, Basel III, FATCA, FCPA, AML, Sanctions

• ASEAN Economic Community (AEC), CIPS, Pacific

payment system • Increasing international connectivity of infrastructures

• ISO 20022 adoption

• Demand for safer and more reliable infrastructure

• Cyber threats increasing • CPMI-IOSCO PFMI & Annex F for CSPs

• Real-time 24-7

• Convergence btw high & low value

Payments

• New systems: ISO 20022 messaging – rapidly growing

interest in XML messaging capabilities • Multi-currency clearing, PvP

• Extended operating hours (e.g. HK RMB 20.5 hrs)

• CPMI-IOSCO Principles • Regulatory reporting • T+2

• ASEAN Economic Community (AEC) • Regional harmonization: ABMF, ASEAN Link, HK-CN,

TW-SG, CSIF cross-border DVP • ISO 20022 adoption

• CPMI-IOSCO & Annex F for CSPs

• Issuer to investor CA announcement

• Funds hub implementation • Collateral management

• OTC clearing

Securities

• Aging technology

• New technology (distributed ledger) • Regional ambition-collaboration

• ISO 20022

Regulation &

compliance

Regionalisation

Resiliency &

reliability

Real-time

10

Translating S2020 to SWIFT APAC Priorities

Trends

Renewal

• Fighting financial crime, monitoring & control, compliance

recommendations. • FATF, Basel III, FATCA, FCPA, AML, Sanctions

• ASEAN Economic Community (AEC), CIPS, Pacific

payment system • Increasing international connectivity of infrastructures

• ISO 20022 adoption

• Demand for safer and more reliable infrastructure

• Cyber threats increasing • CPMI-IOSCO PFMI & Annex F for CSPs

• Real-time 24-7

• Convergence btw high & low value

Payments

• New systems: ISO 20022 messaging – rapidly growing

interest in XML messaging capabilities • Multi-currency clearing, PvP

• Extended operating hours (e.g. HK RMB 20.5 hrs)

• CPMI-IOSCO Principles • Regulatory reporting • T+2

• ASEAN Economic Community (AEC) • Regional harmonization: ABMF, ASEAN Link, HK-CN,

TW-SG, CSIF cross-border DVP • ISO 20022 adoption

• CPMI-IOSCO & Annex F for CSPs

• Issuer to investor CA announcement

• Funds hub implementation • Collateral management

• OTC clearing

Securities

• Aging technology

• New technology (distributed ledger) • Regional ambition-collaboration

• ISO 20022

Regulation &

compliance

Regionalisation

Resiliency &

reliability

Real-time

11

12

Reinventing

correspondent banking Making Real World Change

13

Korea Open Day

Key Highlights

64+ million FIN messages per year (2015)

257+ thousand FIN messages per day (Year to date April 2016)

14 Korea Traffic Insights - YTD April 2016

-0.6% Decrease in FIN traffic (Year to date April 2016)

Trade

Treasury

Securities

Payments

Growth rates based on Year to date April 2016 vs 2015 Average Daily Messages

EMEA Americas Asia Pacific Total SWIFT KOREA North Asia

4.2% 4.7% 3.0% 4.1% -7.2% 4.4%

2.7% 7.8% 26.5% 6.3% 6.6% 12.9%

2.2% 11.1% 9.8% 5.1% 3.2% 9.4%

-4.4% -16.7% -5.8% -6.8% -7.1% -9.7%

3.3% 6.2% 12.5% 5.1% -0.6% 8.2%

Year to date 2016 FIN Traffic growth at a glance

<-10% -10% to 0% >0%

15 Korea Traffic Insights - YTD April 2016

Growth of Full year 2012

Full year 2013 Full year 2014 Full year 2015 Year to date 2016

Korea 3.6% 11.2% 13.2% 31.0% -0.6%

Total SWIFT 3.5% 10.8% 11.0% 8.4% 5.1%

0

50,000

100,000

150,000

200,000

250,000

300,000

Ave

rag

e D

ail

y M

essa

ges

FIN traffic evolution over the years

All markets

+70% vs. SWIFT +47%

Payments

+61% vs. SWIFT +45%

Securities

+87% vs. SWIFT +54%

Treasury

89% vs. SWIFT +24%

5-year Growth Comparison based on Year to date Apr 2016 vs 2011 Average Daily Messages

Growth rates based on Average Daily Messages

16 Korea Traffic Insights - YTD April 2016

Korea ranked 5th in APAC region for Traffic Sent Ranked 19th in worldwide

17

*contribution to growth

Korea Traffic Insights - YTD April 2016

Table shows only the Top 15 APAC countries

Rank YTD traffic Growth CTG* Share Rank YTD traffic Growth CTG* Share

HK Hong Kong 7 775,860 10.1% 5.7% 3.0% 8 744,026 9.6% 5.3% 2.9%

JP Japan 10 644,664 40.2% 14.9% 2.5% 10 435,480 11.8% 3.7% 1.7%

AU Australia 12 529,572 2.1% 0.9% 2.1% 12 422,450 -0.7% -0.2% 1.7%

SG Singapore 15 356,056 6.8% 1.8% 1.4% 14 356,725 3.8% 1.1% 1.4%

KR Korea, Republic of 19 257,831 -0.6% -0.1% 1.0% 22 154,468 6.4% 0.8% 0.6%

CN China 24 187,276 3.9% 0.6% 0.7% 16 275,530 1.5% 0.3% 1.1%

IN India 27 138,087 14.3% 1.4% 0.5% 23 139,840 9.2% 0.9% 0.5%

TH Thailand 28 128,097 29.7% 2.4% 0.5% 28 100,036 23.7% 1.5% 0.4%

TW Taiwan 29 122,539 16.4% 1.4% 0.5% 29 90,326 6.1% 0.4% 0.4%

ID Indonesia 32 89,431 0.3% 0.0% 0.4% 42 40,799 -17.1% -0.7% 0.2%

MY Malaysia 33 88,623 14.3% 0.9% 0.3% 39 43,899 12.6% 0.4% 0.2%

NZ New Zealand 41 67,535 8.2% 0.4% 0.3% 36 57,008 8.9% 0.4% 0.2%

PH Philippines 45 47,983 12.1% 0.4% 0.2% 47 32,423 7.1% 0.2% 0.1%

VN Vietnam 55 22,583 15.3% 0.2% 0.1% 56 24,279 8.5% 0.2% 0.1%

BD Bangladesh 58 22,106 21.0% 0.3% 0.1% 50 28,518 11.1% 0.2% 0.1%

Traffic receivedTraffic sent

Countries ranked by Traffic Sent - April 2016 YTD - Average Daily Volumes

Country Code Country name