South Korea launches deposit token payment infrastructure project for private-sector use

South Korea has launched a new deposit token payment infrastructure project aimed at bringing the results of its central bank digital currency pilot into everyday private-sector payments. The initiative was started by the Korea Internet & Security Agency, or KISA, together with the Ministry of Science and ICT, and is designed to extend the outcome of the country’s CBDC pilot, Project Hangang, beyond the testing environment. The project will be overseen by the Korea Financial Telecommunications and Clearings Institute. It involves nine banks, eight payment gateways, and two large demand-side participants, with a total budget of 9.6 billion won. Rather than building a new payment network from scratch, the plan will use existing payment rails. Users will pay through bank deposit token wallets, while merchants will be able to accept payments without replacing their current terminals. According to the report, the government also plans to test deposit token use for official business travel expenses and study a treasury fund management model linked to dBrain. A key aim of the broader program is to lower payment fees for small and micro merchants.