Rules for Operation and Management of the Bank of Korea Won International Payment System

Enacted August 27, 2026. Approved by the Governor. Payment and Settlement Innovation Team-189

Chapter 1 General Provisions

Article 1 (Purpose)

The purpose of these Rules is to define the matters delegated by the "Rules for Operation and Management of the Payment and Settlement System" (hereinafter referred to as the "Rules") regarding the Bank of Korea Won International Payment System (hereinafter referred to as the "BK-WIPS") and the detailed matters necessary for their implementation.

Article 2 (Definitions)

The meanings of the terms used in these Rules are as follows:

1. "BK-WIPS Participant Institution" refers to a financial institution that has concluded a BK-WIPS membership agreement with the Bank of Korea and opened a Won International Current Deposit Account with the Bank of Korea, in accordance with Article 6, Paragraph 3 of the Rules.
2. "Remitting Institution" refers to a BK-WIPS Participant Institution that requests the Bank of Korea to transfer funds through its Won International Current Deposit Account opened with the Bank of Korea, using the BK-WIPS.
3. "Receiving Institution" refers to a BK-WIPS Participant Institution that receives Won funds transferred through the BK-WIPS.
4. "Beneficiary" refers to the person who receives the transferred Won funds.

Article 3 (Consultation of Opinions)

When the Bank of Korea intends to establish or change major policies related to the BK-WIPS, it must solicit opinions from relevant institutions in advance. However, this may be exempted in urgent cases or when it is deemed inappropriate to disclose the relevant content in advance.

Chapter 2 Operation of the BK-WIPS

Section 1 BK-WIPS Participation and Operational Standards

Article 4 (Membership and Withdrawal)

1. An institution wishing to join the BK-WIPS must submit a membership application form and a BK-WIPS membership agreement form, as determined by the Director of the Financial Payment Department of the Bank of Korea (hereinafter referred to as the "Director of the Financial Payment Department"), to the Bank of Korea.
2. Upon receiving the membership application form as specified in Paragraph 1, the Director of the Financial Payment Department shall review the application form and its attached documents to decide on the approval of membership. If necessary, the Director may request the supplementation of documents.
3. When a BK-WIPS Participant Institution wishes to withdraw from the BK-WIPS, it must submit a withdrawal application form, as determined by the Director of the Financial Payment Department, to the Bank of Korea.
4. An institution that has terminated its membership agreement under Article 25, Paragraph 2, Item 5, or an institution that has withdrawn under Paragraph 3 may apply for re-membership in the BK-WIPS after three years have elapsed from the date of agreement termination or withdrawal. However, this may be exempted if necessary for the Bank of Korea's business operations or if it is deemed unavoidable to use the BK-WIPS due to reasons such as merger.

Article 5 (Registered Matters of BK-WIPS Participant Institutions)

1. BK-WIPS Participant Institutions must register the following matters with the Bank of Korea in advance:
   1. Authorized persons for transfer applications
   2. Communication lines (including disaster recovery communication lines; hereinafter the same)
   3. Other matters deemed necessary
2. The matters in Item 1 of Paragraph 1 shall be determined by the Director of the Financial Payment Department, and the matters in Items 2 and 3 shall be determined by the Director of the IT Strategy Department of the Bank of Korea (hereinafter referred to as the "Director of the IT Strategy Department").

Article 6 (Cost Burden)

1. The BK-WIPS usage fee borne by BK-WIPS Participant Institutions, in accordance with Article 9 of the Rules, shall be governed by these Rules. However, if deemed necessary for the initial stabilization of operations due to the introduction of new systems or for the smooth implementation of the system, the Governor may reduce or exempt all or part of the usage fee for a certain period.
2. The BK-WIPS usage fee is divided into a fixed fee charged monthly and a fund transfer fee charged per transfer transaction (including the fund transfer fee according to Article 8, Paragraph 1 of the "Bank of Korea Deposit and Loan Handling Procedures").
3. The fixed fee shall be 100,000 Won per month; however, in the case of new membership, it shall be calculated on a pro-rata basis from the date of membership, and in the case of withdrawal, up to the business day before the withdrawal date. However, the fund transfer fee shall be charged from a date separately determined by the Governor.
4. The communication line usage fee for connection with the BK-WIPS shall be borne by the BK-WIPS Participant Institution. However, in cases where the Bank of Korea connects to the BK-WIPS for the performance of its business, the Bank of Korea may bear the communication line usage fee.
5. BK-WIPS Participant Institutions must install equipment necessary for connection with the BK-WIPS at their own expense.

Article 7 (Processing of Fund Transfer Applications)

1. When a BK-WIPS Participant Institution applies for a fund transfer, the Bank of Korea shall process it immediately.
2. Notwithstanding Paragraph 1, if the balance of the Won International Current Deposit Account opened by a BK-WIPS Participant Institution with the Bank of Korea is insufficient for the amount of the fund transfer application, the Bank of Korea shall immediately reject the application.

Article 8 (Understanding of Fund Settlement Status)

The Director of the Financial Payment Department shall periodically ascertain the fund settlement status of BK-WIPS Participant Institutions and take necessary measures to ensure smooth fund settlement.

Article 9 (Business Continuity Measures)

The BK-WIPS business continuity measures under Article 14, Paragraph 1 of the Rules must include the following matters:

1. Response procedures for each situation
2. Establishment and operation of an emergency response organization
3. Conditions and procedures for input agency, manual work, etc.
4. Implementation of simulation drills
5. Establishment of an emergency contact system with BK-WIPS Participant Institutions
6. Scope and procedures for reporting and external notification, etc.

Article 10 (Measures in Case of System Failure, etc.)

1. If a BK-WIPS Participant Institution discovers a failure, disaster, strike, terrorism, business suspension, etc., in the BK-WIPS or its own computer system linked to the BK-WIPS, or signs thereof, it must immediately notify the Bank of Korea and perform business according to the processing procedures defined in the BK-WIPS business continuity measures in Article 9.
2. If there is a possibility that the stable operation of the BK-WIPS may be hindered due to the reasons in Paragraph 1, or if security requires it, the Director of the Financial Payment Department may restrict the relevant institution's use of the BK-WIPS after notifying the institution in advance.

Article 11 (Operating Hours)

1. The operating hours of the BK-WIPS shall be from 9:00 AM on business days to 9:00 AM the following day.
2. The start and end times for the input of messages for fund transfers by BK-WIPS Participant Institutions through the BK-WIPS shall be 12:20 AM and 11:40 PM, respectively. However, if the day preceding the days specified in Article 17, Paragraph 2 of the Rules is a business day, the start and end times for message input on the days specified in the items shall be 12:20 AM and 9:00 AM, respectively, and the start time for message input on the first business day after the specified days shall be 9:00 AM, which is the start of BK-WIPS operations.
3. Notwithstanding Paragraph 2, the end time for message input on the last business day within the fiscal year defined in Article 3 of the Bank of Korea "Accounting Rules" shall be 8:00 PM. In this case, fund transfer messages through the BK-WIPS cannot be input before 9:00 AM, which is the start of BK-WIPS operations, on the first business day after the end of the fiscal year.
4. Notwithstanding Paragraph 2, the end time for inputting messages for fund transfer applications between a Participant Institution's general current deposit account and its Won International Current Deposit Account, or between its payment-specific current deposit account and its Won International Current Deposit Account, shall be the message input end time according to Article 13, Paragraph 1 of the "Rules for Operation and Management of the Payment and Settlement System." However, on the last business day of the fund reserve holding period according to Article 3 of the "Financial Institution Payment Reserve Rules," it shall be the time according to Article 13, Paragraph 2, Item 14 of the "Rules for Operation and Management of the Payment and Settlement System," and if the message input end time is changed due to the reasons in Article 13, Paragraph 4 of the same Rules, it shall follow the changed time.
5. The Director of the Financial Payment Department may temporarily change the times according to Paragraphs 1 through 4 if any of the following occur, and may restrict the scope of BK-WIPS Participant Institutions and target business during the changed time. In this case, the Director must immediately notify the Director of the Financial Business Department of the Bank of Korea (hereinafter referred to as the "Director of the Financial Business Department").
   1. Failure of the BK-WIPS
   2. When necessary for the performance of monetary and credit policies by the Bank of Korea
   3. When large-scale or numerous fund settlements are delayed due to computer failures of BK-WIPS Participant Institutions or tight interbank funds, causing significant confusion in the financial market
   4. Other unavoidable cases
6. If the operating hours of the BK-WIPS are changed due to the reason in Item 3 of Paragraph 5, the relevant BK-WIPS Participant Institution must submit the cause of occurrence, processing results, and countermeasures to prevent recurrence to the Director of the Financial Payment Department.

Article 12 (BK-WIPS Participant Institution Council)

1. The Bank of Korea may operate a council composed of relevant persons in charge of BK-WIPS Participant Institutions for the efficient operation of the BK-WIPS.
2. Specific matters regarding the composition and operation of the council under Paragraph 1 shall be determined by the Director of the Financial Payment Department in consultation with the Director of the IT Strategy Department.

Article 13 (Provision of Data to BK-WIPS Participant Institutions)

To facilitate efficient payment liquidity management by BK-WIPS Participant Institutions, the Bank of Korea may provide them with data related to their payments.

Article 14 (Business Development Using the BK-WIPS)

A department head of the Bank of Korea wishing to perform business using the BK-WIPS must request the Director of the IT Strategy Department to develop or change the computer system with the consent of the Director of the Financial Payment Department. In this case, the requesting department head must specify the institutions that can use the business.

Section 2 Establishment and Operation of Won International Current Deposit Accounts

Article 15 (Target Matters for Won International Current Deposit Accounts)

1. When the Bank of Korea handles business specified in Article 5, Paragraph 1 of the Rules through the BK-WIPS, it shall process it through the Won International Current Deposit Account of the BK-WIPS Participant Institution.
2. The Bank of Korea processes the following business through Won International Current Deposit Accounts:
   1. Fund transfers between BK-WIPS Participant Institutions
   2. Fund transfers to designated accounts
3. BK-WIPS Participant Institutions may apply for fund transfers to the Bank of Korea only for transactions settled on the same day.

Article 16 (Fund Transfers Between Current Deposit Accounts)

1. BK-WIPS Participant Institutions may apply to the Bank of Korea for fund transfers among their own general current deposit accounts, payment-specific current deposit accounts, and Won International Current Deposit Accounts. In this case, waiting due to insufficient deposit balances is not permitted.
2. Fund transfers to other BK-WIPS Participant Institutions may only be applied for between current deposit accounts of the same type.

Section 3 Fund Transfers Between BK-WIPS Participant Institutions

Article 17 (Application for Fund Transfers Between BK-WIPS Participant Institutions)

BK-WIPS Participant Institutions may apply for fund transfers from their Won International Current Deposit Accounts to the Won International Current Deposit Accounts of other BK-WIPS Participant Institutions.

Article 18 (Return of Erroneously Transferred Funds)

If funds are transferred to the Won International Current Deposit Account of a BK-WIPS Participant Institution other than the legitimate receiving institution due to errors by the Remitting Institution, the BK-WIPS Participant Institution that received the transferred funds must immediately execute a reverse transaction to restore the original state.

Section 4 Fund Transfers to Designated Accounts

Article 19 (Application for Fund Transfers to Designated Accounts)

A Remitting Institution may apply to the Bank of Korea for a fund transfer by designating the name, address, etc., of a beneficiary who is not a member of the BK-WIPS.

Article 20 (Verification of Account Information)

1. Before applying for a fund transfer to a designated account, the Remitting Institution may send a message to the Bank of Korea requesting verification of the beneficiary's account information.
2. The Bank of Korea shall immediately deliver the message under Paragraph 1 to the Receiving Institution.
3. Upon receiving the message requesting verification of account information under Paragraph 2, the Receiving Institution shall send the verification result of the beneficiary's account information to the Remitting Institution and the Bank of Korea.

Article 21 (Notification of Processing Results)

When the Bank of Korea processes an application for a fund transfer to a designated account, it shall immediately notify the processing results to the Receiving Institution and the Remitting Institution.

Article 22 (Establishment of Deposit Entrustment)

When a Receiving Institution receives notification of the processing result of a fund transfer application from the Bank of Korea under Article 21, it is deemed that the Remitting Institution has entrusted the Receiving Institution to deposit the transfer amount into the beneficiary's account at that time, and the Receiving Institution has accepted this. In this case, the Receiving Institution must immediately deposit the amount into the beneficiary's account.

Article 23 (Inquiry Regarding Deposit Matters)

If a Receiving Institution finds it difficult to process the deposit into the beneficiary's account due to errors in the recorded items of the message received from the Bank of Korea or other reasons, it must immediately inquire with the Remitting Institution.

Article 24 (Return of Un-depositable Funds)

The Receiving Institution must immediately return the transfer amount to the Remitting Institution through the BK-WIPS in any of the following cases:

1. When it is determined that the amount cannot be deposited into the beneficiary's account as a result of inquiry with the Remitting Institution under Article 23
2. When other reasons arise that make it impossible to deposit into the beneficiary's account

Chapter 3 Supplementary Provisions

Article 25 (Sanctions Against BK-WIPS Participant Institutions)

1. The Bank of Korea may take measures such as warnings or requests for correction if a BK-WIPS Participant Institution falls under any of the following items, except in cases of unavoidable reasons. However, if serious obstacles to the operation of the BK-WIPS are caused by intent or gross negligence, the Bank may restrict fund transfers without taking measures such as warnings or requests for correction.
   1. When information learned through the BK-WIPS is leaked to the outside in violation of Article 13, Paragraph 4 of the Rules
   2. When data specified in Article 13, Paragraph 5 of the Rules is not submitted within the period specified by the Bank of Korea or is submitted with false information
   3. When the facts specified in Article 10, Paragraph 1 are not notified to the Bank of Korea or notification is delayed in violation of Article 10, Paragraph 1
   4. When a reverse transaction for the return of erroneously transferred funds is not executed immediately in violation of Article 18
   5. When the amount is not immediately deposited into the beneficiary's account after receiving notification of the processing result of a fund transfer to a designated account from the Bank of Korea in violation of Article 22
   6. When un-depositable funds are not immediately returned to the Remitting Institution in violation of Article 24
   7. When other relevant regulations or instructions of the Bank of Korea are violated
2. If a BK-WIPS Participant Institution that has received a sanction under Paragraph 1 repeats any of the acts specified in the items of Paragraph 1 within one year from the time of receiving the sanction, the Bank may take the following measures according to the number of occurrences:
   1. 2 occurrences: Direct notification of the violation content and sanction facts to the Representative Director and Auditor (or Compliance Officer)
   2. 3 occurrences: The measure in Item 1 and restriction of fund transfers through the BK-WIPS for 1 day
   3. 4 occurrences: The measure in Item 1 and restriction of fund transfers through the BK-WIPS for a period determined by the Director of the Financial Payment Department within 1 week
   4. 5 occurrences: The measure in Item 1 and restriction of fund transfers through the BK-WIPS for a period determined by the Director of the Financial Payment Department within 1 month
   5. 6 or more occurrences: Termination of the BK-WIPS membership agreement or related agreements
3. In the case of integration due to merger, etc., the number of occurrences under Paragraph 2 shall be calculated as separately determined by the Director of the Financial Payment Department.

Article 26 (Delegation)

1. Matters necessary for the implementation of these Rules shall be determined by the Director of the Financial Payment Department.
2. Detailed matters regarding the overall business operation of the BK-WIPS, including hardware, software, communication lines, security measures, and disaster recovery, shall be determined by the Director of the IT Strategy Department.
3. If the Director of the IT Strategy Department intends to enact or revise separate procedures, etc., according to Paragraph 2, they must consult with the Director of the Financial Payment Department in advance.

Supplementary Rules <August 27, 2026>

These Rules shall come into force from the date separately determined by the Governor.
<Enforced from September 21, 2026, by Payment and Settlement Innovation Team-218 (Approved by the Governor on September 17, 2026)>