The Bank of Korea (BOK) has launched a pilot for a new 24-hour won settlement network designed to make South Korean currency transactions more accessible to foreign investors outside the country’s normal banking hours. The initiative is part of South Korea’s broader effort to improve international access to the won and modernize its financial infrastructure.

The pilot began on September 21 with four domestic banks: KB Kookmin Bank, Woori Bank, Hana Bank and Shinhan Bank. The network operates continuously from 9 a.m. on one business day until 9 a.m. the following day, while remaining closed on weekends and public holidays. During the initial testing, two participating institutions completed a transaction worth approximately 1.4 billion won.

The new infrastructure is intended to address one of the limitations faced by overseas investors trading the Korean currency. Under the system, foreign investors can settle won transactions through accounts held with Registered Foreign Institutions for KRW Business (RFI-Ks) in their home countries. This means they do not need to establish direct accounts with South Korean financial institutions simply to access the new settlement network.

The BOK plans to move from the pilot to full implementation in January 2027, with additional institutions and foreign banks expected to participate. The expansion is intended to make won settlement more compatible with the operating hours of international financial markets and reduce barriers for overseas investors dealing in Korean assets and currency.

The initiative also fits into South Korea’s wider work on digital financial infrastructure and tokenized settlement. The central bank has participated in Project Agorá, a Bank for International Settlements-led initiative examining cross-border payments using tokenized central bank reserves and commercial bank deposits. The BOK is also developing Project Hangang, which uses a wholesale central bank digital currency as a settlement asset for tokenized commercial bank deposits.

These projects are related but should not be treated as the same system. The new won settlement network is primarily an upgrade to conventional financial settlement infrastructure, while Project Hangang focuses on blockchain-based wholesale CBDC infrastructure. The BOK's involvement in both areas indicates that South Korea is pursuing improvements to traditional payment rails alongside experiments with tokenized financial systems.

For the broader digital asset industry, the development is relevant because more accessible and internationally connected fiat infrastructure can support the integration of traditional finance with digital assets. However, the pilot itself does not introduce a cryptocurrency settlement system and does not mean that the won is being converted into a blockchain-based currency. Its immediate purpose is to improve access to conventional won settlement for international participants.

The BOK said the network is expected to improve foreign investors' access to won settlement infrastructure and ultimately strengthen the international standing of the Korean won. Whether that objective is achieved will depend on participation, operational performance and adoption after the planned 2027 expansion.