The Bank of Korea confirmed the official name of its offshore won settlement system as 'BOK-Wire Int' and announced it is proceeding with construction work targeting a September pilot launch. Four banks — Kookmin, Woori, Hana, and Shinhan — will participate in the pilot operation. The system aims to enhance settlement convenience for foreign investors in won transactions. This initiative represents a follow-up phase in won internationalization following the expansion of foreign exchange market trading hours to 24 hours.
Choi Seung-jo, head of the Payment and Settlement Innovation Team at the BOK's Financial Settlement Bureau, stated that the bank plans to continuously expand participating institutions after the pilot operation. Foreign bank branches are included as eligible participants, with discussions currently underway with two institutions. While the system will initially be constructed centered on banks operating based on current accounts opened at the Bank of Korea, the policy is to expand participation to various institutions including securities firms.
BOK-Wire Int Operates 24 Hours with Independent Infrastructure
BOK-Wire Int is constructed as a separate independent system from the existing BOK-Wire+ network. The existing BOK-Wire+ serves as payment settlement infrastructure performing large-value fund settlements between financial institutions and the Bank of Korea's open market operations, while BOK-Wire Int is a separate system designed centered on won fund transfers between participating institutions to enhance foreign investors' won settlement convenience.
BOK-Wire+ operates from 9am to 8pm, but BOK-Wire Int will run 24 hours from 9am on business days until 9am the next day. This structure enables foreign investors to execute won settlements aligned with financial market business hours in each country regardless of time differences.
Bank of Korea Expands Participation to Foreign Bank Branches and Securities Firms
Choi stated that the bank will continue expanding participating institutions after the pilot operation, confirming that foreign bank branches are eligible participants and discussions are currently in progress. The system operates based on current accounts opened at the Bank of Korea, so initial construction centers on banks, but the policy is to expand participation to various institutions including securities firms.
MSCI Evaluates Settlement Accessibility for Developed Market Index
The Bank of Korea views this settlement network construction as carrying significance as a follow-up phase in won internationalization following the expansion of foreign exchange market trading hours to 24 hours. The enhanced settlement convenience is also expected to positively affect inclusion in the MSCI developed market index.
Choi explained that when MSCI evaluates won market accessibility, it examines not only trading but also how easily and conveniently settlement is conducted.
FAQ
What is BOK-Wire Int and when will it launch?
BOK-Wire Int is the Bank of Korea's offshore won settlement system with its official name confirmed as 'BOK-Wire Int'. The system is scheduled for a September pilot launch with four participating banks: Kookmin, Woori, Hana, and Shinhan.
How does BOK-Wire Int differ from the existing BOK-Wire+ system?
BOK-Wire Int is a separate independent system from BOK-Wire+. While BOK-Wire+ operates from 9am to 8pm for large-value settlements and open market operations, BOK-Wire Int runs 24 hours (9am to 9am next day) and is designed specifically for won fund transfers to enhance foreign investor settlement convenience regardless of time differences.
