The Bank of Korea’s new governor Shin Hyun-song has prioritised central bank digital currencies and tokenised deposits as part of a broader push to modernise the financial system and internationalise the Korean won.
Shin outlined that strengthening trust in money and ensuring stable payments in a digital economy will be central to policy, alongside maintaining price stability and supporting structural economic reform.
“Through Phase two of Project Han River, we will increase the usability of CBDC and deposit tokens, and through international cooperation such as the Agorá Project, we will enhance the won’s standing even in a digital payments environment,”
Said Bank of Korea governor, Shin Hyun-song.
Project Han River, South Korea’s flagship CBDC initiative, has already processed nearly 115,000 transactions with more than 81,000 participants and is now expanding to include nine banks as it moves toward potential national rollout.
The second phase will focus on legal and institutional reforms required for full deployment, while aiming to reduce transaction costs and create a more efficient payment infrastructure for businesses and consumers.
Shin also emphasised the need for a macroprudential framework to ensure that innovation in digital payments and the internationalisation of the won do not undermine financial stability.
The absence of any reference to stablecoins suggests the Bank of Korea may favour a European-style CBDC-led model over the US approach, reflecting growing global divergence in digital currency strategies.