Korea accounts: upcoming changes to Purpose of Payment codes effective 14 September 2020

Last updated: 31 August 2020

Over the weekend of 12/13 September, we’ll be updating the HSBCnet Purpose of Payment code list for payments from accounts in Korea. In compliance with local regulations, we’ll be providing a list of Purpose of Payment codes that are accepted by the Bank of Korea.

What you need to know

Starting from 14 September, you may find that Purpose of Payment codes you’ve been using for your Priority Payment instructions have been updated. To help you easily include valid codes, you’ll be able to select a code from a new dropdown list in HSBCnet. All of your cross-border payments created on-screen in HSBCnet from accounts in Korea must have a valid Purpose of Payment code.

Here’s what you need to do:

To send a payment from an HSBC Korea account to an account in another country, you need to include a valid Purpose of Payment code in the appropriate field of your payment instructions.

• All cross-border Priority Payments require a valid Purpose of Payment code:
  As part of this update, we’re introducing a convenient dropdown list in the ‘Reason for payment’ field to help you easily select the appropriate code for your payment.

Here’s what the new field looks like:



(select image to enlarge)

• Forward-dated payments and Standing Instructions:
  If you have any forward-dated payments, or Standing Instructions, the payments will be submitted with the payment information that has already been entered. Starting from 14 September, any new Standing Instructions and forward-dated payments in Korea need to be submitted with a valid Purpose of Payment code.
• General and Restricted payment templates created before 14 September:
  To avoid delays or rejections, we recommend that you review and update your cross-border payment templates. If you use a restricted cross-border payment template that includes a value in the ‘Reason for payment’ field, you will need to update the template with a valid Purpose of Payment code before creating payments with the template.

  As of 14 September, if your cross-border payment template includes an invalid code, your payment won’t be processed until you update the code. You’ll be able to use the new dropdown list to select a valid Purpose of Payment code from 14 September.

  Reminder: when you update a restricted template, you will need to have another user approve the changes in the Authorisation Summary service before the template can be used to make payments.

Find out more

If you have any questions, please contact your local HSBCnet Support Centre.