Key facts
- The Bank of Korea launched a pilot of its first 24-hour won settlement network.
- The network aims to allow foreign investors to settle won transactions outside of South Korea's normal banking hours.
- Four domestic lenders, KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank, are participating in the pilot.
- Full operations are scheduled for January 2027.
- Foreign investors will be able to settle won transactions through Registered Foreign Institutions for KRW Business (RFI-Ks).
- The BOK expects the network to strengthen the won's international standing.
The Bank of Korea (BOK) has initiated a pilot program for its first 24-hour settlement network for the South Korean won, designed to accommodate foreign investors' transaction needs outside of the country's standard banking hours. The central bank announced on Monday that its international wire network has commenced trial operations with four domestic banks: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. The full rollout is anticipated in January 2027, with expectations of broader participation from other institutions and foreign banks.
The new network will operate continuously, excluding weekends and public holidays. This will enable foreign investors to settle won transactions during their respective home country business hours by utilizing accounts with Registered Foreign Institutions for KRW Business (RFI-Ks), eliminating the need to open direct accounts with South Korean financial institutions. The BOK believes this initiative will enhance the won's global position by improving accessibility to its settlement infrastructure for international investors.
In parallel, the BOK has been exploring tokenized settlement infrastructure through Project Agorá, a Bank for International Settlements-led initiative. This project successfully completed real-value cross-border payment trials in July, utilizing tokenized central bank reserves and commercial bank deposits, including the won. Furthermore, the BOK is progressing with Project Hangang, a blockchain-based pilot employing a wholesale central bank digital currency (CBDC) for settling tokenized commercial bank deposits.