Bank of Korea Trials 24-Hour Won Settlement Access for Foreign Investors

3 min readPublished 21 Sep 2026Updated 21 Sep 2026, 08:45 UTC

The pilot program aims to widen round-the-clock access to Korea’s currency for overseas market participants.

The Bank of Korea has begun testing a 24-hour won settlement system designed for foreign investors. The pilot allows overseas market participants to settle transactions in the Korean won outside normal domestic banking hours. This addresses a longstanding friction point for international investors operating across different time zones.

Historically, won settlement has been tied to South Korea’s conventional banking schedule. That structure has limited flexibility for foreign funds trying to execute trades or manage currency exposure outside local business hours. A round-the-clock settlement option could reduce timing mismatches between global markets and Korean financial infrastructure.

The central bank’s move comes amid a broader push by South Korean authorities to make local markets more accessible to international capital. Regulators have previously flagged limited trading hours and settlement constraints as obstacles to attracting foreign institutional participation. Expanding settlement windows is one lever policymakers can use without altering core market rules.

Details on the pilot’s scale, participating institutions, and timeline for a potential full rollout were not specified in initial reporting. It remains unclear whether the program is limited to select banks or brokers, or if it will expand to a wider range of foreign investors during the trial phase.

The initiative also arrives as global financial infrastructure increasingly moves toward continuous settlement models, partly driven by developments in digital assets and cross-border payment systems. Traditional settlement windows, tied to national banking hours, have faced growing scrutiny as capital markets become more interconnected globally.

South Korea has taken an active interest in modernizing its financial market structure in recent years, including discussions around stablecoins, digital currency infrastructure, and capital market liberalization. A 24-hour won settlement pilot fits within that broader modernization agenda, even though it is distinct from digital asset initiatives specifically.

The Bank of Korea has not detailed how the pilot interacts with existing foreign exchange controls or reporting requirements. Foreign investors in Korean markets are typically subject to specific currency conversion and repatriation rules, and any settlement change would need to operate within that regulatory framework.

Market Impact

Expanded settlement hours could make Korean assets more attractive to foreign institutional investors managing portfolios across multiple time zones. Reduced settlement friction may support greater foreign participation in Korean equities, bonds, and currency markets over time.

The pilot’s direct market impact is likely to be gradual, given its status as a trial rather than a full system change. Any broader effects would depend on how quickly the Bank of Korea expands eligibility and whether commercial banks adopt the extended settlement infrastructure.

The pilot signals continued efforts by South Korean authorities to align local market infrastructure with international investor expectations. Its ultimate impact will depend on scale, adoption, and whether it evolves into a permanent feature of Korea’s financial system.

Frequently Asked Questions

What does the 24-hour won settlement pilot do?

It allows foreign investors to settle transactions in South Korean won outside standard domestic banking hours, according to the Bank of Korea.

Why is this significant for foreign investors?

Korean won settlement has traditionally followed local banking hours, creating timing challenges for investors operating in other time zones. Extended settlement access could reduce that friction.