BOK launches pilot program for 24-hour offshore won settlement

The Bank of Korea (BOK) has commenced a trial phase of a novel 24-hour offshore won settlement network designed to enhance foreign investment accessibility, according to a statement issued on Monday. Dubbed the BOK Won International Wire Network, the initiative aims to alleviate restrictions for overseas investors by facilitating seamless Korean won transactions.

The pilot program, which commenced operations at 9 a.m. on the trial day, is a collaborative effort between four domestic banks: Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank.

The BOK anticipates a complete rollout by January, with the participation of international banks slated to commence post the official launch. This network will function continuously from 9 a.m. each business day to 9 a.m. the subsequent day, with a hiatus on weekends and public holidays. It will empower offshore investors to conduct unrestricted trading of Korean won with other foreign investors via accounts established at Registered Foreign Institutions for KRW Business (RFI-K) in their respective countries.

The BOK believes that this system will amplify the ease with which foreigners access won settlement infrastructure, thereby elevating the currency's global reputation.