The Bank of Korea (BOK) plans to launch a pilot of its 24-hour offshore won settlement network in September, the central bank said Tuesday, in a move aimed at making the currency more widely used overseas.

The pilot program will involve four major commercial banks — KB Kookmin, Shinhan, Hana and Woori — which are currently conducting tests with the central bank.

The BOK said it expects to complete revisions to its payment and settlement regulations by August, ahead of the pilot launch. Full-scale operations are expected to begin in January.

The network, officially named the Bank of Korea Won International Wire Network (BOK-WireInt), will operate 24 hours a day on business days, from 9 a.m. to 9 a.m. the following day, excluding weekends and public holidays.

The system will allow foreign investors to settle Korean won transactions through accounts held at banks in their home countries during local business hours, rather than waiting for Korean banks to open.

The BOK expects the new settlement network to improve foreign investors' access to Korea's won settlement infrastructure and support the country's bid for inclusion in the Morgan Stanley Capital International developed markets index.

"The system will allow foreign investors to settle won transactions during their local business hours regardless of time-zone differences, improving the convenience of managing and using won-denominated funds," the BOK said.

These developments come just days after financial authorities on Sunday unveiled a road map to internationalize the won, marking the biggest overhaul of Korea's foreign exchange regulatory framework since the 1997 Asian financial crisis.

The road map, jointly announced by the Ministry of Finance and Economy, the BOK, the Financial Services Commission and the Korea Securities Depository, aims to make the won more widely used in global financial markets.

A key part of the plan is the launch of an offshore won settlement system that will allow foreign investors to hold and settle won through designated overseas financial institutions without opening bank accounts in Korea.

The road map also eases restrictions on foreigners' won-denominated capital transactions by more than doubling the thresholds for transactions that require advance reporting under the Foreign Exchange Transactions Act. Transactions deemed to pose little risk to financial stability can instead be reported after they are completed.

Authorities said the measures are intended to improve the accessibility and usability of the won, while maintaining safeguards against excessive capital flow volatility.