BOK Unveils 24-Hour Won Settlement Network for Foreign Investors

The Bank of Korea has launched a pilot program for a 24-hour won settlement network aimed at facilitating foreign investors' access to the Korean won. The network, which is currently being tested with four domestic lenders - KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank - will operate outside South Korea's normal banking hours, excluding weekends and public holidays.

The central bank expects this initiative to enhance the international standing of the won by providing foreign investors with a more convenient and accessible way to settle won transactions. To achieve this, the network will allow foreign investors to settle won transactions through accounts with Registered Foreign Institutions for KRW Business (RFI-Ks), without requiring them to open direct accounts with South Korean financial institutions.

The Bank of Korea has also been experimenting with tokenized settlement infrastructure through various projects, including Project Agorá and Project Hangang. The latter uses a blockchain-based wholesale central bank digital currency (CBDC) to settle tokenized commercial bank deposits.