SEOUL, South Korea, Feb. 28, 2024 /PRNewswire/ — Navigating the complexities of cross-border transactions is no longer a headache for businesses exploring opportunities in Korea, thanks to Hecto Financial’s groundbreaking Master Account Management Solution(MAMS). This innovative platform promises to revolutionize the way overseas businesses manage their finances in Korea, eliminating the need for separate bank accounts and streamlining the entire payment process.
Hecto Financial’s Master Account Cash Flow – Receipt, FX, Transmit, all-in-one go
Effortless 3-in-One Settlement Solution
Hecto Financial’s MAMS offers a comprehensive 3-in-One settlement solution, enabling businesses to manage receivables, payables, and foreign exchange seamlessly. Unlike the traditional method involving three different banks – one for Korea, one as an intermediary, and one in the home country – Hecto Financial’s MAMS simplifies the process by consolidating all functions into its own platform. Clients only need to obtain access to Hecto Financial’s MAMS to handle pay-ins and pay-outs with local Korean partners. MAMS prioritizes user experience, offering a clear one-page overview of payables and receivables. The dedicated team also promptly responds to timely requests throughout the funds’ processing, ensuring a smooth financial journey.
Lower FX Cost Burdens
The payments received are carefully matched with the expenses for specific local Korean partners who exclusively deal in KRW. This balancing act, called "netting" or "offsetting" happens exclusively within the Hecto Financial’s MAMS platform. After handling all the required settlements in KRW, any remaining funds are adeptly converted into the desired currency, mostly in USD, aligning with the preferred currency of the foreign business entity. By diminishing the amount to be converted into a foreign currency upon completing the payment process in Korea, fluctuations in foreign exchange will no longer pose a significant burden for foreign entities.
Beyond Borders: Legal and Tax Advantages
One of the standout features of Hecto Financial’s MAMS is its ability to overcome legal hurdles. Companies do not need to have their physical presence in Korea. Nor do they need to open a bank account tied to a Korean bank. As there is no business activity taking place by a company situated in Korea, there is no legal requirement to pay any corporate taxes or report on transactions to Korean financial authorities. This game-changing approach not only ensures easy compliance but also allows foreign businesses to flourish without the burden of added handling costs.
Innovative Thinking Backed by Experience
With over two decades of experience in the virtual account domain, Hecto Financial is a frontrunner in Korea in this regard. Trusted by numerous B2B clients, including Kakao Pay, Naver Pay, and Coupay, the top three simple pay service providers, as well as major government organizations, Hecto Financial has established a solid reputation. The substantial volume of funds processed annually through Hecto Financial’s virtual account scheme amounts to around KRW 50 trillion (approximately USD 37.5 billion), and even reaching up to KRW 200 trillion (USD 150 billion) when intermediary processing amounts are factored in.
Secure Collaborations with Regulatory Approval
Hecto Financial’s semi-banking activities are officially endorsed by the Korean government, as evidenced by its possession of the requisite license to offer electronic financial transaction services. Hecto Financial has solidified its position through individual contracts with 21 different local banks in Korea. This extensive network is the key that enables users to process their remittances to and from any bank seamlessly, all through a single unified platform. Besides, Hecto Financial’s MAMS platform ensures safety and security of international fund transfers through FX processing with a reputable global bank.
Rising Interest from Industry Giants
Hecto Financial has already garnered notable attention, drawing in distinguished participants from various industries. Among them are industry giants like a leading provider of short-form video content, a prominent platform facilitating overseas direct purchases, and a digital distribution platform specializing in video games. These insightful participants found Hecto Financial’s MAMS having a lucrative business potential as it offers the best way to maximize their sales profit while optimizing cost reduction. With no upfront costs for creating the MAMS, minimal fees for FX conversion, no need for a branch office establishment in Korea, no tax obligation, no compliance hassles, the benefits far surpass expectations. Consequently, the list of esteemed partners continues to grow, promising exciting collaborations on the horizon.
Hecto Financial’s MAMS stands as a testament to the company’s unwavering commitment to simplifying cross-border transactions for businesses operating in Korea. With its innovative approach and extensive experience, Hecto Financial has positioned itself as a reliable partner for foreign businesses looking to thrive in the vibrant Korean market.
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