S. Korea, China sign tie-ups to expand trade, commerce

SEOUL, July 4 (Yonhap) -- South Korean and Chinese businesses and institutions signed several agreements Friday aimed at expanding commerce and trade on the sidelines of the bilateral summit meeting in Seoul.

The Korea Exchange (KRX) and Bank of China said they will develop financial products based on the Chinese yuan, after South Korean Park Geun-hye and her Chinese counterpart, Xi Jinping, agreed Thursday to launch a new two-way foreign exchange market that can fuel trade and reduce losses caused by using the U.S. dollar as the medium of trade.

The KRX-Bank of China agreement will allow the latter to act as the organization responsible for settling accounts. The two sides also agreed to work together when yuan-based financial products are traded on the South Korean exchange, and take cooperative measures to explain Seoul's market conditions to Chinese companies and potential investors.

POSCO, the world's fourth-largest steelmaker, signed a memorandum of understanding (MOU) with China's Chongqing Iron