- Financial institution of Korea’s CBDC pilot relied primarily on inner safety assessments earlier than launch.
- No unbiased audit reviewed Venture Hangang throughout or after real-world testing.
- Oversight considerations develop as South Korea expands CBDC and deposit token initiatives.
South Korea’s central financial institution is dealing with criticism after experiences revealed its first central financial institution digital foreign money (CBDC) pilot lacked an unbiased safety audit. Paperwork submitted by the Monetary Supervisory Service (FSS) present the venture relied primarily on pre-launch safety evaluations performed by collaborating banks as a substitute of exterior oversight, elevating questions on transparency and public belief.
Financial institution of Korea Defends Safety Evaluation Course of
In accordance with a report from Maeil Enterprise Newspaper, a South Korean enterprise every day, the Financial institution of Korea’s first CBDC pilot, generally known as Venture Hangang, ran between April and June 2025 to check real-world digital foreign money transactions.
The trial concerned industrial banks issuing blockchain-based deposit tokens backed by the central financial institution’s wholesale CBDC infrastructure.
Nevertheless, paperwork submitted by the Monetary Supervisory Service to lawmaker Lee Heon-seung confirmed no unbiased authorities safety inspection occurred throughout or after testing. As a substitute, collaborating banks accomplished preliminary safety assessments earlier than the pilot launched.
The pre-launch evaluate included IT vulnerability testing performed with the Monetary Safety Institute and cybersecurity firm SK Shields. Nonetheless, Woori Financial institution and NongHyup Financial institution additionally carried out inner inspections regardless of collaborating straight within the pilot.
Critics argue this construction diminished unbiased oversight as a result of establishments testing the system additionally evaluated their very own safety measures. Consequently, considerations emerged concerning the objectivity of the general evaluation course of.
The Financial institution of Korea later addressed safety considerations in its pilot outcomes report. It said that deposit tokens weren’t weak to cybersecurity dangers as a result of complete safety evaluations had been accomplished earlier than Venture Hangang started.
Nevertheless, observers famous these conclusions mirrored the central financial institution’s inner evaluation moderately than findings verified by means of an unbiased third-party audit. No proof indicated monetary authorities performed follow-up safety inspections after the pilot concluded.
Oversight Questions Develop as Digital Forex Plans Develop
The report additionally highlighted restricted coordination between monetary regulators and industrial banks all through South Korea’s broader CBDC improvement program. In accordance with submitted paperwork, just one formal session involving deposit tokens occurred throughout the previous three years.
That session concerned Shinhan Financial institution and a deposit token-linked insurance coverage product. In the meantime, banks haven’t established devoted supervisory groups targeted particularly on CBDCs or deposit token oversight.
The Financial institution of Korea defended its method, stating extra inspections have been pointless as a result of complete safety evaluations had already been accomplished earlier than the pilot began.
Officers added the method complied with supervisory procedures established by the Monetary Supervisory Service.
Business individuals keep that unbiased verification stays important for strengthening confidence in future digital fee infrastructure. They argue exterior audits following real-world testing would enhance transparency and reinforce market credibility.
The scrutiny comes as South Korea continues advancing digital asset insurance policies, together with plans for won-backed stablecoins and expanded CBDC initiatives. Authorities are additionally getting ready extra pilot packages involving tokenized authorities bonds, programmable deposit tokens, and cross-border fee tasks underneath the Financial institution for Worldwide Settlements’ Venture Agora.