SG partners with Kookmin Bank on commodity derivatives business

The partnership, in the form of a service agreement signed between the two banks, will enable SG and Kookmin Bank to develop tailor-made products for clients who are exposed to price risk, especially in raw materials such as energy, metals and grains.

Commodity prices have been increasing due to rapid economic growth in China and India. However, except for those few large enterprises, most Korean companies are not properly hedging the risk of price fluctuation in raw materials due to lack of knowledge as well as low credibility, according to a joint statement issued by SG and Kookmin Bank.