The Bank of Korea (BOK) has launched a pilot programme for its first 24-hour international settlement network for the Korean won, allowing foreign investors to trade and settle transactions o
The Bank of Korea (BOK) has launched a pilot programme for its first 24-hour international settlement network for the Korean won, allowing foreign investors to trade and settle transactions outside South Korea’s conventional banking hours.
The system processed its first transaction worth approximately 1.4 billion won ($1 million) within 30 minutes of launching, in partnership with KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank.
Source: Bank of Korea
The network allows offshore investors to settle won transactions through Registered Foreign Institution for KRW Business (RFI-K) accounts in their home countries, without opening accounts directly with South Korean domestic banks. It operates 24 hours a day on weekdays, closing during weekends and public holidays. The pilot will continue through the end of 2026, with full implementation scheduled for January 2027.
South Korea’s expanded FX trading hours have not yet fully resolved concerns over overnight USD/KRW liquidity. In its June market classification review, MSCI kept South Korea in the Emerging Market category, citing concerns over whether global investors could execute large transactions efficiently during extended trading hours. The new settlement system is designed to address part of that gap by making it easier for offshore institutions to move and settle won without relying on direct accounts at domestic banks.
Source: Google finance
The timing is important for South Korea’s push toward MSCI Developed Market status. MSCI has indicated that international investors need enough time to assess whether the FX reforms deliver sustained improvements in market accessibility and liquidity. If the pilot demonstrates consistent overnight settlement and deeper institutional participation, it could strengthen South Korea’s case for eventual placement on the Developed Market watchlist.
Also Read:Japan Moves to Tighten Crypto Rules as Market Expansion Push Continues
The Korea Discount is the valuation gap often associated with South Korean equities compared with some global and regional peers. Developed Market classification could potentially grow the pool of institutions able to invest in Korea and increase exposure through global index-linked funds. The settlement reform does not guarantee such an outcome, but it represents another piece of the market-access infrastructure South Korea is trying to modernise.
South Korea already has a large crypto market, but access for overseas and corporate participants remains limited. As of July 2026, the country’s five major exchanges averaged about 597.8 billion won ($406.5 million) in daily trading volume, equivalent to just 1.59% of KOSPI’s average daily volume. Meanwhile, more than 566,000 foreign crypto accounts were registered at major exchanges in July, but only 90 were active, highlighting the gap between account access and actual participation.
For global traders, the importance is more about when capital can move. A fund trading Korean digital assets across Asia, Europe or the US could face fewer timing mismatches when moving won between traditional financial markets and crypto venues. That could make market-making, arbitrage and treasury operations easier across time zones, although the settlement network itself does not automatically remove Korea’s separate regulatory restrictions on institutional crypto trading.
This also fits into the move toward faster digital settlement in Korea. The BOK is separately testing tokenized deposits and cross-border digital settlement through Project Hangang and Project Agorá, while Korean banks are experimenting with blockchain-based payment infrastructure. This creates the potential for traditional won settlement and tokenized money systems to eventually operate alongside each other, giving institutions more options for moving liquidity across borders.
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