What to know:
- South Korea CBDC moves ahead as BOK confirms Project Hangang phase two rollout.
- Agora Project links Korea to global CBDC efforts focused on cross-border payments.
- Stablecoin bill stalls as Korea debates bank control versus fintech participation.
The development of South Korea CBDC began to gain momentum when the Bank of Korea Governor Shin Hyun-song gave the initial speech in support of digital currency development. He confirmed progress on a blockchain pilot while outlining monetary priorities under his leadership and policy direction.
Shin’s four-year term is initiated after the official inauguration held in Seoul on Tuesday. Shin announced that the central bank will proceed with the second stage of its “Project Hangang.” This is a blockchain-based wholesale central bank digital currency system.
Also Read: India Proposes BRICS CBDC Network for Seamless Trade Payments
South Korea CBDC Pilot and Policy Debate
The pilot focuses on institutional payments and settlement processes. It aims to assess efficiency and security under a distributed ledger framework. The Bank of Korea leads the initiative with a structured testing approach.
Shin also referred to global cooperation through the “Agora Project.” This initiative launched in April 2024 with support from the Bank for International Settlements and seven central banks. It studies tokenization in cross-border payment systems.
According to him, such projects may elevate the international status of the Korean won. The emphasis is on enhancing payment infrastructure within a digital setting. Cross-border efficiency remains a key objective for South Korea CBDC adoption.
Stablecoins were not mentioned in his address. Previous announcements indicated a willingness to create stablecoins based on won. However, the topic remained absent from his speech.
The stablecoin bill of South Korea is still in limbo. Lawmakers and regulators still disagree on issuance regulations. The controversy is whether banks should issue control or whether fintech companies should be involved.
Global Risks Shape South Korea CBDC
Another issue that Shin discussed concerns the global economic risks. He referred to the Middle East tensions and how they influenced the price of oil. These developments still have an impact on the inflation and market conditions.
He explained that the central bank had to react to increased uncertainty. The monetary policy should be flexible and prudent. Price stability and financial balance are key priorities for South Korea CBDC policy direction.
Prior to joining, Shin worked as an economic adviser from 2014 to 2026. Also, he took the position of director of the Monetary and Economic Department in 2025.
Recently, Shin discussed stablecoins in his academic paper. According to him, stablecoins do not demonstrate any monetary unity due to the fragmented blockchain networks. Different conditions in terms of fee payments, safety, and design result in inconsistency.
Additionally, South Korea is going to conduct a blockchain payment pilot test. This project concerns the use of tokenized bank deposits for governmental expenses. This project is planned to start in Sejong City.
The pilot has some restrictions regarding time and expenditure categories. The wider implementation is anticipated in Q4 2026. The test will operate under a regulatory sandbox framework.
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