Bank of Korea launches 24-hour won settlement pilot for foreign investors
South Korea's central bank starts 24-hour won settlement trial
The Bank of Korea (BOK) has launched a pilot of its first 24-hour won settlement network. The system aims to let foreign investors settle won transactions outside South Korea's normal banking hours.
On Monday, the central bank announced that its international wire network had begun trial operations with four domestic lenders: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank.
Key numbers and details
- The network will operate 24 hours a day, excluding weekends and public holidays.
- Four domestic banks are participating in the trial phase.
- Full operations are scheduled for January 2027, with plans to expand to other institutions and foreign banks.
What the Bank of Korea said
The BOK stated that foreign investors will be able to settle won transactions during business hours in their home countries through accounts called Registered Foreign Institutions for KRW Business (RFI-Ks). This means they would not need to open accounts directly with South Korean financial institutions.
The central bank said it expects the network to help strengthen the won's international standing by improving foreign investors' access to won settlement infrastructure.
Related blockchain initiatives
The BOK has also experimented with tokenized settlement infrastructure through Project Agorá, led by the Bank for International Settlements. That project completed real-value cross-border payment trials in July, using tokenized central bank reserves and commercial bank deposits, including the won.
The BOK is also advancing Project Hangang, a blockchain-based pilot that uses a wholesale central bank digital currency (CBDC) to settle tokenized commercial bank deposits.
What is confirmed
The BOK launched the pilot on Monday with four domestic banks. The network operates 24 hours a day, excluding weekends and public holidays. Full operations are planned for January 2027. Foreign investors will use RFI-K accounts to settle won transactions without needing direct accounts at South Korean financial institutions.
Why this matters
The pilot could improve how foreign investors access the South Korean won for settlement, potentially making the currency more accessible in international markets. It also shows the BOK's broader interest in blockchain-based settlement systems alongside its existing digital currency experiments.
What happens next
Full operations are expected in January 2027, when the BOK plans to expand participation to other institutions and foreign banks.
Sources
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