South Korea wants the won open for business while Seoul sleeps...

Bank of Korea Opens 24-Hour Won Settlement Trial

The Bank of Korea launched trial operations of its new round-the-clock won settlement network on Monday, September 21, marking a significant step in South Korea's push to lower barriers for foreign investors. The system, dubbed the BOK Won International Wire Network, began trial operations at 9 a.m. in cooperation with four local banks: Kookmin Bank, Woori Bank, Hana Bank and Shinhan Bank.

Four local banks are taking part, with two completing 1.4 billion won (approximately $1 million) of transactions so far. The BOK described the platform as its first settlement network designed to operate around the clock on business days, as existing Bank of Korea payment infrastructure has traditionally followed domestic operating hours.

The network will operate for 24 hours, from 9 a.m. each business day to 9 a.m. the following day, and will close on weekends and public holidays. It will enable offshore investors to freely trade the Korean won with other foreign investors using accounts opened at Registered Foreign Institutions for KRW Business (RFI-K) in their home countries. That means foreign investors can settle won transactions during their own local business hours without needing to hold a Korean bank account.

Full implementation is scheduled for January, with overseas banks set to join the network after its official launch. The government earlier unveiled a roadmap for the internationalization of the won, which followed the move to keep the foreign exchange market open 24 hours a day, and the settlement network is being introduced as part of that plan.

Project Hangang Runs a Separate Blockchain Track

The new settlement network is distinct from the @bok_hub's parallel blockchain efforts. The BOK is also advancing the Hangang project, a blockchain-based pilot that settles tokenized commercial bank deposits using wholesale central bank digital currency. Project Hangang is a pilot program under which the BOK builds a blockchain-based wholesale CBDC infrastructure and commercial banks issue deposit tokens on that platform for use in real-world consumer payments and settlements.

The central bank plans further tests of tokenized instruments, including a scheduled trial of tokenized government bonds with CBDC in 2027. Taken together, the two initiatives reflect a broader effort by South Korea to modernize its financial plumbing and raise the international standing of the won.

Sources:
Korea Times: BOK launches pilot program for 24-hour offshore won settlement
Bloomberg: South Korea Starts Trial Run of 24-Hour Won Settlement System
Korea JoongAng Daily: Bank of Korea launches 24-hour offshore won settlement pilot