TITLE: South Korea's Financial Services Commission Designates Five Innovative Financial Services Including Central Bank Digital Currency Phase Two Testing
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On July 15, 2026, South Korea's Financial Services Commission (FSC) designated five new innovative financial services, bringing the cumulative total of designated services to 1,111. The FSC also modified the designation details of seven previously designated innovative financial services.
The FSC designated Gyeongnam Bank and IM Bank as innovative financial service operators to support Phase Two testing of deposit token-based payment and settlement services within the Bank of Korea's central bank digital currency (CBDC) system, known as Project Hangang. Seven existing banks—KB Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank, NH Nonghyup Bank, Industrial Bank of Korea, and Busan Bank—had their Phase One designations modified to accommodate Phase Two expansion. Phase Two expands the user wallet capacity from 100,000 to 500,000 accounts and merchant coverage to include small businesses and large enterprises. The service now includes remittance functionality alongside payment capabilities, with the scope extended to treasury fund execution projects. User convenience improvements include automatic deposit token conversion, biometric authentication, enhanced holding and remittance limits, and direct payment methods via smart contracts. Merchant-side enhancements include non-face-to-face electronic wallet opening and cash receipt issuance functions.
The FSC also designated Orange Square's unattended currency exchange machine and mobile app service for foreign tourists, and Naver Financial's prepaid electronic payment service for inbound foreign visitors. These services allow foreign tourists to obtain prepaid cards up to 1 million won without domestic identity verification procedures, reducing cash-carrying burdens and supporting tourism activation. Additionally, Kakao Bank and Busan Bank received designation for their joint lending service, combining Kakao Bank's low capital costs and non-face-to-face infrastructure with Busan Bank's corporate credit assessment capabilities to provide competitive lending rates to small and medium enterprises.