The Bank of Korea announced on July 21 that it has officially named its offshore won payment system the 'Bank of Korea Won International Payment Network' (BOK International Network) and will begin pilot operations in September.
The pilot program will involve four major banks: KB Kookmin, Woori, Hana, and Shinhan, which are currently conducting tests with participating institutions. The necessary revisions to the Bank of Korea's payment and settlement system regulations are expected to be completed by August.
The BOK Won International Payment Network is designed to facilitate transactions in won between foreign individuals using accounts opened at their domestic banks. Previously, the government announced a 'won internationalization roadmap' that allows foreigners to freely use won overseas, following the 24-hour opening of the foreign exchange market.
To achieve this, a new offshore won payment network will be established, with plans for it to operate 24 hours a day starting in January next year after the pilot phase. Foreign investors will be able to conduct won transactions in line with the business hours of financial markets in their respective countries, significantly enhancing the convenience of managing and utilizing won funds.
The Bank of Korea stated, 'We expect that the establishment of the Won International Payment Network will improve foreign access to won payment infrastructure and positively contribute to the inclusion in the Morgan Stanley Capital International (MSCI) developed market index.'
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.