South Korea has unveiled a comprehensive roadmap to transform the Korean won into a freely convertible currency through digital asset integration. According to a July 19 report from local mediahouse Etnews, the roadmap was jointly announced by the Financial Services Commission, Bank of Korea, Financial Supervisory Service, and Korea Securities Depository. The plan establishes legal rules for issuing and circulating won-denominated stablecoins under the upcoming Digital Asset Basic Act, which will provide the legal basis for bringing won-backed stablecoins into the domestic financial system while supporting cross-border fund movement.
South Korea has announced comprehensive measures to enhance global acceptance of its currency by allowing foreign financial institutions to borrow won through temporary overdrafts. According to reports from The Economic Times, these institutions will also be permitted to utilize won-denominated bonds as collateral in financial transactions. The finance ministry announced these initiatives on Sunday as part of a broader strategy to transform the won from a restricted local currency into a more global currency.
Starting July 6, South Korea extended the trading hours of the dollar-won market to a 24-hour trading cycle. As reported by The Economic Times, this expansion represents a significant step in integrating South Korea's currency into the wider international markets. The extended trading hours aim to provide greater accessibility for global investors and institutions seeking to participate in won-denominated financial instruments.
The Bank of Korea plans to expand pilot projects linking institutional central bank digital currency (CBDC) with tokenized government bonds, while participating in the Bank for International Settlements' Project Agora for developing digital infrastructure. According to the latest roadmap, the central bank has proposed that bank-led consortiums should receive priority when issuing won-backed stablecoins, arguing that existing banking supervision offers stronger safeguards for financial stability and consumer protection. The Bank of Korea continues expanding its deposit token program, which operates separately from stablecoins and includes future use cases for government subsidies, public vouchers, and electric vehicle charging payments.
Beyond digital assets, the roadmap includes measures to modernize South Korea's foreign exchange system. Following the launch of 24-hour foreign exchange trading, the government plans to establish an offshore won settlement network within the Bank of Korea. As reported by Etnews, overseas financial institutions that register as offshore won settlement entities would allow foreign users to hold, transfer, and settle won through offshore accounts without opening bank accounts in South Korea. The government also plans to more than double reporting thresholds for foreign currency lending and capital transactions, with long-term intentions to replace the current prior approval system with a post-reporting framework.
