Key facts
- The Bank of Korea will begin the second phase of its CBDC pilot in September, involving nine major banks.
- Participating banks will issue and manage deposit tokens using BOK-provided infrastructure.
- The pilot aims to lay the groundwork for potential commercialization of a digital won.
- New features to be tested include peer-to-peer transfers, biometric authentication, and automated deposit token transfers.
- The pilot will also explore the use of tokenized bank deposits for government subsidy payments.
The Bank of Korea is preparing to launch the second phase of its central bank digital currency (CBDC) pilot, known as Project Hangang, in September. This next stage will expand real-transaction testing to nine major banks, including regional lenders Kyongnam Bank and iM Bank, alongside top financial groups KB Kookmin, Shinhan, Hana, and Woori Financial Group. The BOK will provide the infrastructure, while participating banks will issue and manage deposit tokens, aiming to establish the foundation for potential commercialization of a digital won. The pilot will explore features such as peer-to-peer transfers, biometric authentication, and automated deposit token transfers, as well as the use of tokenized bank deposits for government subsidy payments. The first phase of Project Hangang, which focused on payment infrastructure, concluded in June 2025 after involving approximately 81,000 participants and facilitating 114,880 transactions.