Bank of Korea Launches Test Operation of Won International Settlement System; Full Launch Set for Next Year

The Bank of Korea announced that it began a test operation of the Bank of Korea Won International Settlement System starting at 9 a.m. today (the 21st).

Four domestic commercial banks—KB Kookmin, Woori, Hana, and Shinhan—participated in the pilot operation.

Foreign banks are also scheduled to join when the system goes into full operation next January.

The Bank of Korea shared that around 9:30 a.m. today, two domestic participating institutions carried out the first trial transaction worth approximately 1.4 billion won.

This is the first payment network operated by the Bank of Korea to run 24 hours a day, excluding weekends and public holidays.

Through this system, foreign investors can settle transactions in won during their own country's business hours simply by opening an account with a Registered Foreign Institution for Won Transactions (RFI-K) overseas, rather than going through a domestic financial institution.

The Bank of Korea stated that it expects the establishment of this settlement network to significantly improve foreigners' access to won-denominated payment infrastructure and contribute to enhancing the international status of the Korean won.

An official from the Bank of Korea said, "We plan to operate the settlement network stably through continuous monitoring while contributing to the development of South Korea's payment and settlement infrastructure through institutional and system improvements, as well as the expansion of participating institutions."

(File Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.