BOK to pilot 24-hour offshore won trading system in September

The Bank of Korea (BOK) said Tuesday that it plans to launch a pilot program for a 24-hour offshore won settlement network in September as part of the country's efforts to improve foreign investors' access to the local financial market.

The BOK said it is testing the system, named the BOK Won International Wire Network, with four local operators — Kookmin Bank, Woori Bank, Hana Bank and Shinhan Bank.

Revisions to related regulations will be completed by August before the pilot program begins in September, the BOK added.

A full implementation is scheduled for January.

The network will operate on a 24-hour basis from 9 a.m. on each business day to 9 a.m. the following day, and will close on weekends and public holidays. It will enable offshore investors to freely trade the won with other foreign investors using accounts opened at banks in their home countries.

The BOK expects the system to improve foreign investors' access to the won settlement infrastructure while also supporting Korea's efforts to gain inclusion in the MSCI Developed Markets Index.

Earlier this month, Asia's fourth-largest economy officially launched a 24-hour trading system for the won as part of the government's long-term plan to internationalize the currency.

Yonhap