Bank of Korea Starts Offshore Won Settlement Pilot
The Bank of Korea (BOK) has launched a pilot for a new international won settlement network, marking a step toward making Korean won settlement more accessible to foreign investors operating across different time zones.
The central bank announced the start of the pilot on September 21, 2026. The initiative is designed to allow foreign investors to settle won transactions during operating hours in their own countries instead of being restricted by South Korea’s domestic banking schedule. The BOK's official announcement provides the details of the pilot and participating institutions: Bank of Korea announcement
The BOK has been developing the system as part of efforts to improve the international usability of the won and strengthen Korea’s financial-market infrastructure. Its broader 2026 monetary-policy plans identified the creation of a 24-hour offshore KRW settlement system as a key payment-infrastructure project, with pilot operations planned for the second half of 2026 and full operation scheduled for 2027.
How the New Won Settlement Network Works
The system is intended to address one of the practical problems faced by overseas investors: the time difference between South Korea and major international financial centers.
Under the planned structure, foreign investors can use designated offshore institutions to access won settlement without needing to establish accounts directly with financial institutions in South Korea. The arrangement is designed to connect offshore participants with domestic banks that maintain the necessary settlement infrastructure in Korea.
The BOK has described the system as an offshore KRW settlement system, using real-time gross settlement, or RTGS. Under RTGS, transactions are settled individually rather than being accumulated and settled in batches. The central bank has also said the system will use ISO 20022, an international financial messaging standard intended to improve interoperability and cross-border payment processing. The BOK's payment-system documentation provides additional background on the infrastructure: Bank of Korea payment-system information
The planned network will operate around the clock on business days, excluding weekends and public holidays. That schedule is intended to create more overlap with the operating hours of overseas financial markets.
Why 24-Hour Won Settlement Matters
For international investors, access to local-currency settlement can become complicated when domestic payment systems close while overseas markets remain active.
Extending access to won settlement could reduce some of the timing constraints created by different business hours. This is particularly relevant as South Korea continues efforts to make its capital markets more accessible to global investors and improve the international infrastructure surrounding the won.
The BOK has linked improvements to payment and settlement infrastructure with the broader internationalization of won-denominated securities. Its 2026 policy documents also connect these efforts with Korea’s push for greater integration into global financial markets.
For foreign investors, the important change is therefore not that the won itself becomes a 24-hour currency. Instead, the settlement infrastructure supporting certain won transactions is being expanded so that overseas market participants can access it during a wider range of international business hours.
Full Launch Is Planned for 2027
The September pilot is part of a longer implementation schedule rather than the final version of the network.
The BOK’s 2026 policy documentation says the system is expected to move from pilot operations in 2026 to formal operation in 2027. The central bank has also said it is carrying out system development, connection testing and business-continuity planning to support stable operation.
The pilot will allow the central bank and participating institutions to test the infrastructure before broader participation begins. The BOK’s September 21 announcement formally marks the start of this trial phase.
The eventual expansion of participation is expected to make the network more useful to international investors and financial institutions that need access to won settlement across different time zones.
Won Settlement Is Also Moving Toward Tokenized Infrastructure
The new settlement network is part of a wider effort by the BOK to modernize Korea’s payment infrastructure, including experiments involving distributed-ledger technology and tokenized money.
One example is Project Agorá, a public-private initiative led by the Bank for International Settlements (BIS) that is exploring tokenized central bank reserves and commercial bank deposits for wholesale cross-border payments.
The BIS says its real-value testing involved multiple financial institutions and central banks across several currencies, including the Korean won. More information about the initiative is available through the Bank for International Settlements — Project Agorá.
The project is separate from the BOK’s new won settlement network, but both initiatives demonstrate the central bank’s interest in improving cross-border payment infrastructure and exploring how new technologies can support international settlement.
Project Hangang Adds Another Digital Settlement Experiment
The BOK is also advancing Project Hangang, its broader experiment involving institutional digital money and tokenized bank deposits.
According to the central bank, Project Hangang began in 2023 and has included experiments using institutional digital currency and deposit tokens. The BOK has been preparing additional real-world transactions, building on its earlier pilot work.
Project Hangang is focused on a different area from the offshore won settlement network, but both projects form part of the BOK’s wider work on the future of payment and settlement systems.
The BOK’s approach therefore combines improvements to existing financial infrastructure with experiments involving tokenized deposits and distributed-ledger technology. Its official policy material provides further details on these digital-payment initiatives: Bank of Korea monetary policy and payment-system plans
What the Pilot Means for Korea’s Financial Infrastructure
The launch gives foreign investors a new settlement channel designed around the realities of global financial markets, where trading and investment activity continues across multiple time zones.
For the Bank of Korea, the project is also part of a longer effort to strengthen the international infrastructure surrounding the won. The central bank has said its offshore won settlement system is intended to improve the international competitiveness of Korea’s payment infrastructure and make cross-border won payments more convenient.
The September 2026 pilot is an early stage of that process. The next major milestone will be the planned transition to full operation in 2027, when the network is expected to move beyond its trial phase and support broader participation.
