South Korea expands CBDC pilot: wallet limit to increase to 500,000
South Korea's financial regulator has given the green light to the second phase of the ambitious Hangang project — an experimental digital payment platform based on CBDC. Key change: the maximum number of user wallets increases from 100,000 to 500,000, and the number of participating banks expands from seven to nine. The launch of expanded testing is expected in September.
It is important to emphasize: the limit of 500,000 refers specifically to wallets, not unique users. Citizens will not directly own CBDC — for settlements, they will receive deposit tokens issued by commercial banks. This is a key element of the project's two-tier model.
Regulatory Limits: A Sharp Increase
The storage limit per wallet will rise from 1 million won to 10 million won. The total transaction limit will increase from 5 million won to 100 million won. For individuals and sole proprietors, the following transfer restrictions apply:
- up to 1 million won per transaction;
- up to 5 million won per day.
For legal entities, limits depend on the transaction method: via internet banking — up to 1 billion won per transaction and up to 5 billion won per day; via mobile app — up to 100 million won and 500 million won respectively. The functionality will also include wallet-to-wallet transfers, biometric confirmation, and automatic top-up of deposit token balances from a regular bank account when funds are insufficient.
Nine Banks and Expanded Acceptance Network
The initial seven banks (KB Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank, Nonghyup Bank, Industrial Bank of Korea, and BNK Busan Bank) will be joined by Gyeongnam Bank and iM Bank. The Financial Services Commission has granted them the status of experimental financial service operators. The acceptance network will expand through small businesses and large enterprises.
Two-Tier Model and Government Spending
The Hangang project uses a classic two-tier structure: the Bank of Korea issues wholesale CBDC for interbank settlements, and commercial banks create deposit tokens based on it — digital obligations of a specific bank. Users pay with tokens, while CBDC serves for final settlements between financial institutions.
The second phase will also involve the execution of certain government expenditures. Smart contracts will allow deposit tokens to be transferred directly to recipients and set conditions for their use. Notably, in 2027, South Korea plans a pilot of tokenized government bonds, with settlements linked to wholesale CBDC within the Project Hangang infrastructure.
Cryptalist Analysis: Scaling to 500,000 wallets is not just a test but a serious bid for implementation. South Korea is steadily moving toward creating a hybrid payment ecosystem where CBDC and deposit tokens coexist with traditional banking products. The automatic top-up feature is particularly noteworthy — it is a step toward seamless integration of digital money into everyday life, which could serve as a model for other countries.