South Korea's central bank has initiated a trial run for a 24-hour won settlement system, a move designed to enhance foreign access to its local markets and enable continuous won payments. This pilot program, which started on September 21, 2026, involves four major Korean banks: KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank. The system is intended to operate 24 hours a day on business days, closing only during weekends and public holidays, and is scheduled for full implementation in January 2027, when foreign banks are expected to join.
This initiative allows foreign investors to settle won transactions through Registered Foreign Institutions for KRW Business (RFI-Ks) accounts, eliminating the need to open separate accounts directly with domestic Korean financial institutions. The first test transaction, valued at approximately 1.4 billion won (roughly $1 million), occurred between two participating domestic institutions on the first day of the trial. This new network represents the Bank of Korea's first settlement system designed for round-the-clock operation, diverging from its traditional infrastructure that adheres to domestic operating hours, to better accommodate the working hours of overseas investors.
The 24-hour won settlement system is a key component of South Korea's broader Won Internationalization Roadmap. This roadmap, published by the Finance Ministry in collaboration with the Bank of Korea and other agencies in July, aims to provide round-the-clock foreign exchange access, facilitate offshore won accounts, simplify capital transactions, and establish settlement infrastructure accessible outside Korea. This pilot follows previous efforts to move the domestic foreign exchange market toward 24-hour trading, with the new network specifically addressing the payment aspect of this policy.
