K-CBDC (Korean CBDC)

K-CBDC refers to the Bank of Korea's Central Bank Digital Currency pilot program focusing primarily on wholesale CBDC applications for interbank settlements and cross-border payments rather than retail public use, testing blockchain technology integration with banking infrastructure and participation in international CBDC projects.

The Bank of Korea initiated CBDC research and pilot programs examining both retail and wholesale use cases, ultimately prioritizing wholesale applications given South Korea's already highly efficient domestic payment systems including real-time retail payment infrastructure with 90%+ digital payment adoption. K-CBDC wholesale pilots test delivery-versus-payment for securities settlements, cross-border payment corridors with other central banks, integration with tokenized deposits from commercial banks, and participation in Bank for International Settlements Innovation Hub projects including mBridge for multi-CBDC cross-border settlements.

Strategic priorities include modernizing Korea's securities settlement infrastructure, reducing settlement risk and costs through atomic transactions, enabling 24/7 instant cross-border payments, maintaining won's role in international trade as CBDC infrastructure develops globally, and positioning Korea as Asian financial technology leader. The Bank of Korea collaborates with commercial banks, securities firms, and technology partners on technical standards, legal frameworks, and operational models. Retail CBDC remains under consideration but lower priority given existing payment system efficiency and concerns about commercial bank disintermediation. K-CBDC development reflects approach where advanced economies with mature payment infrastructure focus wholesale CBDC on specific inefficiencies rather than retail replacement of existing systems.