Bank of Korea launches 24-hour won settlement pilot for foreign investors
The Bank of Korea (BOK) has launched a pilot of its first 24-hour won settlement network to enable foreign investors to make won transactions outside South Korea’s normal banking hours. The trial currently involves four major domestic banks, with full operation planned for 2027 and expanded participation.
Pilot launch and participants
The Bank of Korea launched its 24-hour won settlement pilot network on Monday. The trial involves four domestic lenders: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. Full operations are planned for January 2027, with participation expected to expand to more institutions and foreign banks.
The network will operate around the clock, excluding weekends and public holidays. Foreign investors will be able to settle won transactions during their own business hours through accounts held with Registered Foreign Institutions for KRW Business (RFI-Ks), removing the need to open direct accounts with South Korean financial institutions.
Strategic initiatives by the Bank of Korea
The BOK expects the new network to strengthen the won's international standing by improving foreign investors’ access to won settlement infrastructure.
Beyond this, the central bank is advancing innovative payment solutions. Under Project Agorá, led by the Bank for International Settlements, real-value cross-border payment trials using tokenized central bank reserves and commercial bank deposits—including the won—were completed in July.
Additionally, the BOK is developing Project Hangang, a blockchain-based pilot that uses a wholesale central bank digital currency (CBDC) to settle tokenized commercial bank deposits.
Why it matters
The launch of a 24-hour won settlement network for foreign investors marks a significant step towards the international integration of the Korean currency. It provides investors with flexible and timely access to won transactions without needing to open accounts in Korean banks, greatly simplifying processes and lowering barriers for international participation. These initiatives enhance the won’s appeal and foster its use in global financial flows, reflecting South Korea’s growing importance in the global financial market.
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