The Bank of Korea (BOK) has initiated a pilot program for a 24-hour Korean Won settlement network, a significant step aimed at bolstering the international status of the Korean Won and enhancing foreign investor access to South Korean financial markets. The pilot, which commenced on Monday, September 21st, includes participation from four major Korean banks: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank.
This new network enables foreign investors to settle Korean Won (KRW) transactions during their local business hours, thereby mitigating time-zone limitations that previously was associated with settlement delays. This functionality is supported by Registered Foreign Institutions for KRW Business (RFI-K) accounts, a system established by the Financial Supervisory Service (FSS) in 2021. The RFI-K framework allows eligible foreign financial institutions to provide KRW settlement services to their overseas clients without requiring a physical presence in South Korea. The pilot effectively adds 24/7 cross-border wire transfer capabilities to this existing infrastructure.
According to the central bank’s official announcement, the full launch of the 24-hour settlement network is slated for January 2027. At that time, the network’s reach is expected to expand to include a broader range of domestic and foreign financial institutions. This initiative is viewed as a crucial development in strengthening the internationalization of the Korean Won and its underlying cross-border payment infrastructure.
The BOK stated in its announcement that the network is anticipated to attract increased foreign capital into Korea’s bond and stock markets by improving foreign investors’ access to KRW settlement infrastructure. This development aligns with a global trend where major economies are actively promoting the internationalization of their national currencies and enhancing their payment systems. In a regional context, Korea’s launch of this 24-hour network is being observed alongside China’s digital RMB (e-CNY) and the Bank of Japan’s digital Yen experiments.
The pilot program directly addresses a key challenge for foreign investors: settlement delays was associated with by time differences. Previously, when European or American traders were active, Korean banks were often closed, leading to postponed settlements. The full implementation of the all-day network is expected to significantly alleviate this issue.
Beyond traditional wire transfers, Seoul is also actively engaged in tokenized cross-border payments. The Bank for International Settlements (BIS)-led Project Agorá completed cross-border payment tests in July using tokenized central bank reserves and commercial bank deposits, with KRW as one of the test currencies. Furthermore, the BOK’s Project Hangang utilizes blockchain technology and wholesale central bank digital currency (CBDC) to settle tokenized commercial bank deposits, underscoring Seoul’s broader investment in digital financial infrastructure.
Looking ahead, the extent of participation by major European and American commercial banks in the RFI-K network following the full launch in January 2027 will be a key variable. Increased participation could potentially enhance the frequency of KRW usage as a transaction currency in the Asian region. In comparison, Taiwan has not yet introduced a similar all-weather New Taiwan Dollar cross-border settlement mechanism, and foreign investment in its domestic bond and stock markets remains constrained by bank business hours, indicating South Korea’s advancement in this area of financial infrastructure.
Why This Matters
The materials describe a narrow update: The Bank of Korea (BOK) has initiated a pilot for a 24-hour Korean Won settlement network, allowing foreign investors to settle KRW transactions during their local business hours. The extent of participation by foreign banks in the RFI-K network after the full launch in January 2027 is a key variable.
Broader Context
Source materials place the factual news in this context: 韓國央行啟動 24 小時韓元交割網路試點，KB Kookmin、Woori、Hana、Shinhan 四家銀行先行接入。外國投資者可於當地營業時間透過 RFI-K 帳戶交割韓元，不需直接在韓國開戶。全面上線定在 2027 年 1 月，屆時將擴充套件至更多境內外機構。.
