BOK To Launch 24-Hour Offshore Won Settlement Pilot In September

According to Yonhap, the Bank of Korea (BOK) said Tuesday it plans to launch a pilot program in September for a 24-hour offshore won settlement network to improve foreign investors' access to South Korea's financial market. The system, called the BOK Won International Wire Network, is being tested with Kookmin Bank, Woori Bank, Hana Bank and Shinhan Bank, and related regulations will be revised by August before the pilot starts. A full rollout is scheduled for January. The network will run from 9 a.m. on each business day to 9 a.m. the following day and will be closed on weekends and public holidays. It will allow offshore investors to trade the Korean won with other foreign investors through accounts opened at banks in their home countries. The BOK said the system is intended to broaden access to the won settlement infrastructure and support South Korea's bid for inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets Index.