Expanding to Civil Payments: South Korea Launches Deposit Token Payment Infrastructure Project

According to Odaily, the Korea Internet & Security Agency (KISA), in collaboration with the Ministry of Science and ICT, has launched the "Deposit Token Payment Infrastructure Expansion Project." This initiative aims to extend the outcomes of South Korea's CBDC pilot, "Project Hangang," to the civil payment sector. The project is led by the Korea Financial Telecommunications & Clearings Institute (KFTC), with participation from 9 banks, 8 payment gateways, and 2 major demand-side entities, boasting a total budget of 9.6 billion KRW. Its goal is to reduce payment processing fees for small and micro merchants.

The project leverages existing payment systems rather than building new infrastructure. Users can complete payments through their bank deposit token wallets, and merchants do not need to upgrade their terminals. The government also plans to apply deposit tokens to a pilot program for official business travel expenses and explore a treasury fund management model linked to dBrain.