Bank of Korea Trials Round-the-Clock Won Settlements for Foreigners

Key Insights:

• The Bank of Korea initiated 24-hour won settlement testing for foreign investors.
• Four local lenders joined prior to full deployment scheduled for January 2027.
• Separate tokenized payment trials indicate that South Korea is building parallel settlement avenues.

On September 21, the Bank of Korea launched trials for round-the-clock won settlement within South Korea. This pilot is designed for international investors who previously encountered settlement boundaries tied to local banking hours. The central bank anticipates launching full operations in January 2027.

This initiative broadens South Korea’s ongoing efforts to open its foreign exchange architecture to overseas entities. It also operates in parallel with separate experiments focused on tokenized deposits and wholesale central bank money.

Bank of Korea Starts 24-Hour Won Settlement Pilot

The Bank of Korea reported that the BOK Won International Wire Network commenced trial operations on September 21. Four domestic banks participated in this initial test: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank.

According to Yonhap, the trial runs began at 9 a.m. local time. The system stays active until 9 a.m. on the following business day, closing over weekends and public holidays.

Full implementation is slated by the central bank for January 2027, with foreign banks expected to participate following the official rollout.

Broader context for the project was provided by the central bank’s 2025 Payment and Settlement Systems Report, which noted that BOK-Wire+ operating hours were lengthened in March 2026. The report additionally referenced development on BOK-Wire Int and ISO 20022 integration.

These steps followed wider initiatives aimed at minimizing cross-border settlement frictions, while also syncing payment systems with South Korea’s expanded foreign exchange trading hours.

The finance ministry indicated that the local foreign exchange market transitioned to 24-hour operations on July 6. While that reform broadened trading access, settlement infrastructure still required distinct updates. The newly introduced network bridges this post-trade gap and extends settlement across international business hours.

How the Won Settlement Network Works

The regulatory layout was established by the Ministry of Finance and Economy on September 16 through amended guidelines creating Registered Foreign Institutions for KRW Business, known as RFI-Ks.

Through omnibus accounts opened with local foreign exchange banks, registered entities can settle South Korean won transactions via BOK-Wire Int.

Under this framework, eligible customers are restricted by the ministry to foreign non-residents. Furthermore, RFI-Ks are mandated to verify customer identities and report major transactions to regulators.

To minimize settlement risk, the updated regulations allow for unlimited won borrowing from domestic lenders via overdraft facilities dedicated to settlement processes. The ministry noted this safeguard was built specifically for risk reduction.

These September 16 amendments came after a public consultation running from August 24 through September 3. The ministry stated that the Office for Government Policy Coordination finalized its regulatory review ahead of issuance, clearing the framework for testing.

Consequently, international investors can execute transactions through registered institutions outside of South Korea, lowering reliance on direct accounts with South Korean financial firms.

The ministry tied this structure back to its July 19 Roadmap for KRW Internationalization, a strategy aimed at encouraging wider offshore holdings, trading, and settlement of the currency.

Bank of Korea Builds Alongside Tokenized Payment Tests

Although the settlement network itself does not rely on a central bank digital currency or blockchain technology, the central bank has evaluated tokenized settlement via separate initiatives.

Real-value trials for Project Agorá were executed in July 2026, according to the Bank for International Settlements. Participating entities processed roughly 800,000 Swiss francs across 17 different transaction scenarios.

The evaluation utilized tokenized commercial bank deposits alongside tokenized central bank reserves, encompassing the Korean won alongside five additional currencies.

Project Agorá brought together 28 central banks and financial institutions for real-value testing. The Bank for International Settlements reported that settlements averaged approximately 80 seconds.

Additionally, the Bank of Korea has advanced Project Hangang, which centers on wholesale central bank digital currency architecture. The initial phase focused on testing tokenized commercial bank deposits on a shared ledger.

In March, the central bank announced plans for a second live phase scheduled for late 2026, with officials preparing the upcoming stage following insights gained from the 2025 pilot.

While these ventures operate independently from the new offshore won network, they demonstrate that South Korea is actively evaluating multiple settlement frameworks concurrently.

Bank-of-Korea-Targets-January-2027-Full-Rollout

Rules backing offshore won operations have already been amended by the Ministry of Finance and Economy. According to the government, registered entities will function under strict transaction monitoring and prudential supervision.

The next major milestone is the full commercial rollout of offshore settlement operations in January 2027, after which foreign banks are anticipated to join the network.

Implementation will demonstrate whether wider operating hours boost accessibility without introducing fresh settlement vulnerabilities. The ministry confirmed that authorities will keep a close watch on transactions and regulatory compliance as offshore won activity flows through these registered intermediaries.

Frequently Asked Questions

When did the Bank of Korea begin testing 24-hour won settlement?
Testing officially began on September 21.

When is the full rollout scheduled?
The full implementation is targeted for January 2027.

Which domestic lenders joined the initial test?
KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank participated in the pilot.

Does the new network use blockchain technology?
No, the settlement network does not use blockchain or a central bank digital currency, though separate tokenized trials are underway.