South Korea Expands CBDC Pilot to Private Sector Payments

Huo Xing Finance reports, according to DigitalToday, that the Korea Internet & Security Agency (KISA), in collaboration with the Ministry of Science and ICT, has launched the "Expansion Project for Deposit Token Payment Infrastructure," extending the results of Korea’s CBDC pilot, "Project Hangang," into the private payment sector. Spearheaded by the Financial Settlement Institute, the project involves nine banks, eight payment gateways, and two major demand-side participants, with a total budget of KRW 9.6 billion, aiming to reduce payment processing fees for small and micro merchants. Leveraging existing payment systems rather than building new infrastructure, users complete payments via bank deposit token wallets, eliminating the need for merchants to upgrade their terminals. The government also plans to pilot deposit tokens for public travel expenses and explore integrated treasury fund management models in coordination with dBrain. Approximately KRW 3 billion of the total budget will be allocated to development, operations, and promotion efforts by SMEs, startups, and IT companies, while participating banks will separately pursue related initiatives totaling approximately KRW 4.5 billion.