Key Insights:
- The Bank of Korea began 24-hour won settlement testing for foreign investors.
- Four domestic lenders joined before full operations began in January 2027.
- Separate tokenized payment tests show Korea is developing parallel settlement rails.
The Bank of Korea began testing round-the-clock won settlement in South Korea on Sept. 21. The pilot targets foreign investors who previously faced settlement limits tied to domestic banking hours. The central bank plans full operations in January 2027.
The project extends South Korea’s wider effort to open its foreign exchange infrastructure to overseas institutions. It also runs beside separate experiments involving tokenized deposits and wholesale central bank money.
Bank of Korea Starts 24-Hour Won Settlement Pilot
Bank of Korea stated the BOK Won International Wire Network entered trial operations on Sept. 21. Four domestic lenders joined the initial test: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank.
Yonhap reported that trial operations began at 9 a.m. local time. The network runs until 9 a.m. the following business day. It closes during weekends and public holidays.
The central bank scheduled full implementation for January 2027. Overseas banks are expected to join after the official launch.
The central bank’s 2025 Payment and Settlement Systems Report provided a wider context for the project. It said BOK-Wire+ operating hours were extended in March 2026. The report also cited work on BOK-Wire Int and ISO 20022 adoption.
Those measures followed broader efforts to reduce settlement frictions across borders. They also aligned payment infrastructure with South Korea’s expanded foreign exchange trading hours.
The finance ministry said the domestic foreign exchange market moved to 24-hour operations on July 6. That reform expanded trading access, but settlement infrastructure still required separate upgrades. The new network addresses that post-trade gap and extends settlement across global business hours.
How the Won Settlement Network Works
The Ministry of Finance and Economy defined the regulatory structure on Sept. 16. Its amended rules created Registered Foreign Institutions for KRW Business, known as RFI-Ks.
Registered institutions can open omnibus accounts with domestic foreign exchange banks. They can then settle Korean won transactions through BOK-Wire Int.
The ministry limited eligible customers to foreign non-residents under the new framework. RFI-Ks must also verify customer status and report major transactions to the authorities.
The rules permit unlimited won borrowing from domestic banks through overdrafts for settlement purposes. The ministry said that the measure was designed to reduce settlement risk.
The Sept. 16 amendments followed a public consultation held from Aug. 24 through Sept. 3. The ministry said the Office for Government Policy Coordination completed regulatory review before issuance. That cleared the framework before testing.
Foreign investors can therefore transact through registered institutions outside South Korea. That structure reduces dependence on accounts opened directly with Korean financial institutions.
The ministry linked the framework to its July 19 Roadmap for KRW Internationalization. The plan targeted wider overseas holding, trading, and settlement of the currency.
Bank of Korea Builds Alongside Tokenized Payment Tests
The settlement network itself does not use blockchain or a central bank digital currency. However, the central bank has tested tokenized settlement through separate programs.
The Bank for International Settlements said Project Agorá conducted real-value testing in July 2026. Participants processed about 800,000 Swiss francs across 17 transaction scenarios.
The test used tokenized central bank reserves and commercial bank deposits. It covered the Korean won alongside five other currencies.
Project Agorá involved 28 financial institutions and central banks in real-value testing. The Bank for International Settlements said the average settlement took about 80 seconds.
The Bank of Korea has also developed Project Hangang around a wholesale central bank digital currency infrastructure. Its first phase tested tokenized commercial bank deposits on a unified ledger.
The central bank said in March that a second live phase was planned for late 2026. Officials were preparing the next stage after reviewing lessons from the 2025 pilot.
These projects remain separate from the new offshore won network. Still, they show that Korea is testing several settlement models simultaneously.
Bank of Korea Targets January 2027 Full Rollout
The Ministry of Finance and Economy has already amended rules supporting offshore won business. The government said registered institutions will operate under prudential oversight and transaction monitoring.
The immediate milestone is the January 2027 launch of full offshore settlement operations. Foreign banks are expected to join the network after that launch.
Implementation will show whether expanded operating hours improve access without creating new settlement risks. The ministry said authorities would monitor transactions and compliance as offshore won activity moves through registered institutions.
