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Bank of Korea CBDC pilot faces scrutiny as Project Hangang expands

Bank of Korea CBDC pilot faces scrutiny as Project Hangang expands

South Korea approved a larger second phase for its deposit-token based CBDC pilot while a 9.6 billion won private-payments push broadens the project despite criticism over the lack of an independent security review.

Fact Check
The primary Maeil Business exclusive (mk.co.kr), based on FSS data submitted to lawmaker Lee Heon-seung, directly supports the claim that no independent government security audit occurred during or after phase one of the Bank of Korea CBDC pilot, which relied on participant self-assessments. Crypto.news and Cryptopolitan corroborate, both attributing to the same Maeil report, and confirm approval of a larger second stage (deposit-token/CBDC hybrid). The Bank of Korea's own defense (calling pre-launch reviews sufficient) implicitly confirms the absence of a separate independent audit. All key elements of the claim are consistent across sources.
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Summary

The Bank of Korea's Project Hangang is expanding even as its first CBDC pilot phase faces scrutiny over the lack of an independent security audit during or after testing. Maeil Business, citing Financial Supervisory Service documents submitted to Representative Lee Hun-seung's office, reported that the only formal review took place before launch in February 2025, when participating banks conducted initial security tests and vulnerability self-assessments with support from the Financial Security Institute and SK Shields. The Bank of Korea said those pre-launch checks were sufficient. Separately, South Korea has approved a broader second phase and launched a 9.6 billion won program backed by KISA and the Ministry of Science and ICT to extend the pilot into private-sector payments, with 9 banks, 8 payment gateways and 2 large demand-side participants aiming to reduce payment fees for small merchants.

Terms & Concepts
  • CBDC: A digital form of sovereign money issued by a central bank.
  • deposit tokens: Blockchain-based digital representations of commercial bank deposits used in tokenized payment systems.
  • wholesale CBDC: A central bank digital currency designed for settlement between financial institutions rather than direct public use.