The Bank of Korea announced on Tuesday its intention to commence a pilot program for a 24-hour offshore won settlement network in September. This initiative forms part of broader efforts to enhance foreign investor access to the nation's financial markets.
The central bank indicated it is collaborating with four domestic financial institutions—KB Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank—to test the new system, which is designated as the "BOK Won International Transfer Network."
The full-scale launch of the entire system is scheduled for January of next year.
This settlement network will operate around the clock, providing continuous service from 9 a.m. on one trading day until 9 a.m. the next, with closures on weekends and public holidays. International investors will be able to conduct won-denominated transactions freely with other overseas participants using accounts established at banks within their own countries.
The Bank of Korea anticipates that this system will not only streamline foreign investors' use of won settlement infrastructure but will also support South Korea's objective of being classified within the MSCI developed markets index.
Earlier this month, South Korea officially launched a round-the-clock won trading system, a move that is also a component of the government's long-term strategy to promote the internationalization of its currency.
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