Bank of Korea Launches 24-Hour Won Settlement Pilot to Boost Foreign Investment

This initiative enhances South Korea's foreign investment appeal by allowing real-time currency transactions outside traditional banking hours.

• The Bank of Korea launched a pilot program for a 24-hour won settlement network on September 21, 2026.
• Four major banks participated in the pilot, executing transactions totaling approximately 1.4 billion won on the first day.
• Full commercial operation is expected in January 2027, expanding access for foreign investors.

• South Korea is liberalizing its foreign-exchange market to attract more international investment.
• Previous measures included extending onshore dollar-won trading to a 24-hour schedule, which required corresponding settlement infrastructure.
• The new network aligns with South Korea's goal of achieving MSCI developed-market status by improving currency convertibility.

On September 21, 2026, the Bank of Korea (BOK) initiated a pilot program for its 24-hour won settlement network, a significant step in enhancing the accessibility of the Korean won for foreign investors. This pilot program, which began at 9 a.m. local time, involves four major domestic banks: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. The banks executed transactions totaling approximately 1.4 billion won shortly after the launch, demonstrating the system's immediate functionality.

The network operates continuously from 9 a.m. on business days until 9 a.m. the following day, excluding weekends and public holidays. It employs a real-time gross settlement system, which minimizes credit risk and ensures that transactions are settled instantly. This is crucial for foreign investors who require timely access to funds and want to avoid the delays associated with traditional banking hours.

The pilot program is part of a broader strategy by the Bank of Korea to modernize its payment systems and enhance the international standing of the won. The initiative follows the July 2026 extension of onshore dollar-won trading to a 24-hour schedule, which highlighted the need for a corresponding settlement infrastructure that could operate outside domestic banking hours. Without this infrastructure, the extended trading hours would have limited utility for international participants.

The BOK's efforts are also aligned with regulatory updates that permit Registered Foreign Institutions for KRW Business (RFI-Ks) to facilitate offshore won accounts and transfers. This regulatory framework is designed to improve foreign-exchange convertibility and operational accessibility, making it easier for foreign investors to engage with the Korean market.

As the pilot progresses, the Bank of Korea will monitor operations, refine procedures, and expand participation. The full commercial launch is scheduled for January 2027, at which point foreign banks are expected to join the network. This expansion is anticipated to further enhance liquidity and reduce operational friction in Korean won transactions, making the currency more attractive to global investors.

• Foreign investors: Gain easier access to Korean markets, potentially increasing investment flows.
• Domestic banks: Benefit from increased transaction volumes and enhanced service offerings.
• Financial professionals: Experience streamlined processes for cross-border transactions, improving operational efficiency.

• Foreign bank participation: Monitor which international banks join the network post-launch and how this affects transaction volumes.
• Market response: Watch for changes in foreign investment levels in South Korea as the new system becomes operational.
• Regulatory updates: Keep an eye on any further regulatory changes that may enhance or restrict foreign participation in the Korean market.