Bank of Communications, China's fifth-biggest lender, was appointed as the yuan clearing bank in South Korea, China's central bank said on Friday.
China welcomes South Korea's participation in the establishment of the Asian Infrastructure Investment Bank, President Xi Jinping said in Seoul on Friday.
China and South Korea plan to directly trade their currencies, marking a step forward in the renminbi's internationalization.
China and South Korea pledged on Thursday to conclude negotiations on a free trade agreement before the end of this year, but experts said major difficulties remain in sensitive areas.
Chinese President Xi Jinping's visit to South Korea on Thursday and Friday is expected to greatly advance the negotiations on a bilateral free trade agreement.
China and the Republic of Korea (ROK) will sign cooperative documents covering the economy and trade, finance, the environment and consular affairs during President Xi Jinping's state visit to Seoul.
South Korea's Jeju Island has attracted Chinese real estate ventures in recent years, due mainly to its geographical location, immigration policy and housing prices.
Some Chinese-backed property projects are being held up on South Korea's Cheju Island as the local government has decided to re-examine previously approved plans and substantially raise the requirements for foreigners to obtain permanent residence through real estate investment, media reports said.
An upcoming visit President Xi Jinping will make to the Republic of Korea has been described by the country's ambassador to China as being of "unparalleled significance".
Beijing and Seoul on Monday pledged to push forward free trade negotiations to upgrade cooperation, as President Xi Jinping met with Republic of Korea President Park Geun-hye on the sidelines of the APEC summit.
A China-ROK free trade agreement will be beneficial for both parties, former ROK deputy prime minister and Minister of Finance Jeon Yun-churl said.