Bank of Korea launches 24-hour won settlement pilot for foreign investors
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The Bank of Korea (BOK) has launched a pilot for a 24-hour won settlement network designed to enable foreign investors to settle won transactions outside of South Korea’s regular banking hours. The pilot started trial operations with four domestic banks: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. Full operations are slated for January 2027, with plans to include other institutions and foreign banks.
Why it matters
The BOK expects the new network to strengthen the international standing of the won by improving access for foreign investors to won settlement infrastructure. The service will allow foreign investors to settle transactions during their local business hours without needing to open accounts directly with South Korean banks.
Key context
Prior to this pilot, won settlements were limited to South Korea’s normal banking hours. The BOK has also been exploring tokenized settlement infrastructure through Project Agorá with the Bank for International Settlements and is running Project Hangang, a blockchain-based pilot using a wholesale CBDC for settling tokenized commercial bank deposits.
Key numbers and entities
The pilot involves four domestic banks: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. Full participation is planned by January 2027, with future expansion to additional institutions and foreign banks. The projects mentioned are Project Agorá and Project Hangang.
What remains unclear
The source does not specify the exact timeline for expanding participation beyond the initial four banks or the detailed operational mechanics of the 24-hour network. It also does not disclose how many foreign investors have participated so far or quantitative measures of potential impact on won internationalization.