South Korea has established what it claims to be the world's first electronic system for the negotiation of export bills.

The new system is aimed at speeding up letter of credit (L/C) and several other types of trade finance transaction.

Paperless transactions

According to the official Yonhap news agency, the new e-Nego system updates the existing uTradeHub infrastructure, which allows businesses to carry out paperless cross border transactions.

The locally developed system can electronically process L/Cs, bills of lading, insurance policies and certificates of origin.

Administration eased

The system aims to help exporters reduce the administration time needed to collect export bills from the current six days to three days.

Funds can be retrieved in a single day rather than the two to three days required when using paper files and documents.

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