The Bank of Korea is scaling up its central bank digital currency-based deposit token experiment, moving into a second phase that significantly increases participating banks and user limits. The Financial Services Commission announced on the 15th that it has designated Gyeongnam Bank and iM Bank as new innovative financial service providers for 'Project Hangang' Phase 2, while also amending the designations of the seven banks that participated in Phase 1: KB Kookmin, Shinhan, Woori, Hana, Nonghyup, KDB, and Busan Bank.
Expanded Scope and Capabilities
The core of Phase 2 is to bring the experiment closer to real-life usage. Deposit tokens digitize bank deposits for payments and transfers, testing how CBDC technology can connect with private financial services. The user cap will rise from 100,000 in Phase 1 to 500,000, and acceptance points will expand from existing merchants to small business owners and large enterprises. Transfer functionality is being added to the existing payment-only structure, and the business scope now includes national treasury fund disbursement.
Enhanced User Convenience and Limits
Usability improvements include automatic deposit/withdrawal switching, biometric authentication, and direct payment methods. The holding limit per deposit token wallet has been raised from 1 million won (cumulative 5 million won) to 10 million won (cumulative 100 million won), while the transfer limit is set at 1 million won per transaction and 5 million won per day for individuals. The authorities view these adjustments as a step beyond mere technical demonstration, aiming to verify whether users can seamlessly integrate the tokens into everyday financial transactions.
New Use Cases and Complementary Services
New features include non-face-to-face electronic wallet opening for businesses and cash receipt issuance, testing deposit token viability in real commercial settings for self-employed individuals and companies. The success of digital currencies often hinges on how naturally they are used, making this phase a critical test of institutional and infrastructure practicality. Separately, the Financial Services Commission also designated Orange Square's unmanned currency exchange and prepaid card service for foreign tourists, Naver Financial's prepaid electronic payment service for inbound visitors, and a joint loan service by KakaoBank and Busan Bank as innovative financial services. These moves indicate the authorities are broadening regulatory experiments in digital payments, lending, and foreigner financial convenience to assess real market applicability.