Bank of Korea begins pilot for 24-hour offshore won settlement network

The Bank of Korea’s new network will let foreign investors settle won transactions during business hours in their home countries.

The Bank of Korea (BOK) said Monday it has launched a pilot program for a 24-hour offshore won settlement network in line with Korea's efforts to lower barriers for foreign investors. The central bank said the system, dubbed the BOK Won International Wire Network, began trial operations at 9 a.m. in cooperation with four local banks — Kookmin Bank, Woori Bank, Hana Bank and Shinhan Bank. The BOK said full implementation is scheduled for January, with overseas banks set to join the network after its official launch. The network will operate for 24 hours, from 9 a.m. each business day to 9 a.m. the following day, and will close on weekends and public holidays. It will enable offshore investors to freely trade the Korean won with other foreign investors using accounts opened at Registered Foreign Institutions for KRW Business (RFI-K) in their home countries. "The network is expected to improve foreigners' access to won settlement infrastructure, eventually enhancing the currency's international standing," the BOK said.