🧠 Food for thought

Implications, context, and why it matters.

Currency links sit under the QR convenience

• The payment link runs on a Local Currency Transaction (LCT) framework agreed by both countries and active since September 2024 1.
• It cuts foreign exchange conversion costs plus transaction fees for small purchases, including retail items, food and beverage spending, and local transportation 2.
• The rollout ties into other bilateral finance efforts, including a renewed $7.3 billion currency swap agreement between the two nations 3.
• The Bank of Korea plans to take it beyond in-store use to online payments, while pursuing similar QR-based links with other Association of Southeast Asian Nations (ASEAN) countries 4.

Central banks are building shared QR networks

• Central banks are putting up payment rails that work alongside cash and card-based cross-border spending, which can lower reliance on both 2.
• Linking national QR standards is spreading across the region, with Thailand’s PromptPay system already connected to six countries, including Indonesia and Japan 5.
• Less friction in transactions can support tourism while also helping trade plus consumption between the two countries 1.