The Bank of Korea is accelerating its central bank digital currency (CBDC) pilot, Project Hangang, as legislation on a digital assets framework law stalls in parliament. The project has moved into a second phase focused on building a basis for commercialising deposit tokens, expanding participating banks and planned QR-code payments at more stores. The bank will also test paying an electric-vehicle charging subsidy in deposit tokens, a first for public finance, while debate continues over stablecoin oversight.

LG CNS will take part in the second phase of the Bank of Korea’s institutional digital currency and deposit-token pilot, Project Hangang. The phase will test the use of tokenised bank deposits in transactions by the general public and explore applying them to the disbursement of government subsidies. LG CNS will again serve as the main operator, overseeing operation and upgrades of the digital currency system. New functions including biometric authentication and peer-to-peer transfers have been developed.