Korea to launch pilot offshore won settlement network in September

The Bank of Korea (BOK) plans to launch a pilot of its 24-hour offshore won settlement network in September, the central bank said Tuesday, in a move aimed at making the currency more widely used overseas.

The pilot program will involve four major commercial banks — KB Kookmin, Shinhan, Hana and Woori — which are currently conducting tests with the central bank.

The BOK said it expects to complete revisions to its payment and settlement regulations by August, ahead of the pilot launch.

Full-scale operations are expected to begin in January.

The network, officially named the Bank of Korea Won International Wire Network (BOK-WireInt), will operate 24 hours a day on business days, from 9 a.m. to 9 a.m. the following day, excluding weekends and public holidays.

The system will allow foreign investors to settle Korean won transactions through accounts held at banks in their home countries during local business hours, rather than waiting for Korean banks to open.

The BOK expects the new settlement network to improve foreign investors' access to Korea's won settlement infrastructure and supp ...