Bank of Korea Starts 24-Hour Won Pilot
On Monday, 21 September 2026, the Bank of Korea launched a pilot program allowing round-the-clock settlement of the Korean won, according to the central bank. The pilot involves four commercial banks and is designed to let foreign investors settle trades through RFI-K accounts, a special channel that bypasses traditional correspondent banking hours.
The move marks a significant step in South Korea’s efforts to make the won more accessible to global markets and to align with the G20 goal of enhancing cross-border payments. It also comes as the country prepares for full liberalization of its foreign exchange market by 2027, a plan first announced in 2024.
Why 24-Hour Settlement Matters For Foreign Investors
Currently, foreign investors can only settle won-denominated trades during Korean business hours, typically 9 a.m. to 3:30 p.m. KST. This creates a time-zone mismatch with U.S. and European markets, forcing investors to pre-fund accounts or bear overnight risk. The new pilot extends settlement to 24 hours, which should reduce frictions and potentially increase foreign participation in Korean equities and bonds.
The RFI-K accounts are a key innovation: they allow foreign institutions to hold won directly without needing a local custodian, streamlining the process. The four banks involved are likely among the largest in Korea, though the Bank of Korea did not name them in the initial announcement.
Four Banks And The 2027 Deadline
The pilot is scheduled to run through the end of 2026, ahead of the planned full launch in 2027. If successful, it could be expanded to more banks and broader investor categories. The Bank of Korea has indicated that the pilot will test not only technical infrastructure but also regulatory and compliance frameworks.
For global investors, this could mean more efficient access to Korea’s $1.7 trillion stock market and its bond market, which is Asia’s third-largest. Korea is also seeking to join the FTSE Russell World Government Bond Index, and improved settlement is a prerequisite.
Market Context And What To Watch
The Korean won has been volatile in 2026, trading around 1,300 per dollar in recent weeks, as the Federal Reserve’s rate path and China’s slowdown weigh on Asian currencies. A more accessible won could attract foreign capital, but it also exposes the currency to faster flows.
Analysts will watch the pilot’s uptake and whether it leads to increased foreign holdings of Korean assets. The Bank of Korea’s next policy meeting on 15 October 2026 may provide further details on the 2027 roadmap. The key number to watch is the daily settlement volume through RFI-K accounts—if it exceeds $1 billion, that would signal strong demand and a likely expansion.
For now, the pilot is a small but concrete step toward Korea’s goal of becoming a more open financial market. If it works, other Asian economies may follow suit.
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