Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Daiso to join BOK-led project to test central bank digital currency
Foreign tourists browse affordable goods at a Daiso store in Seoul, April 15, 2025. A popular destination for both Koreans and international visitors, Daiso will join this year's central bank digital currency project. Yonhap
By Yi Whan-woo
Daiso, a popular Korean discount retailer, will join the second round of an experimental project to test the feasibility of central bank digital currency (CBDC), according to the Bank of Korea (BOK) and industry officials on Tuesday.
A CBDC is a digital form of a country’s sovereign currency, issued and regulated directly by a central bank, and is considered more secure and stable than private or decentralized digital currencies.
Dubbed Project Hangang, the BOK-led pilot involving Daiso will follow the first round that took place in 2025.
“We expect this year’s test program will help the BOK accelerate the collection of transaction data from a range of customers,” an industry official said.
He added that Daiso is popular in Korea among people of all ages, especially those in their 20s and 30s, offering a wide range of miscellaneous goods.
Its affordable prices have also been attracting foreign tourists, making it a must-visit destination.
Under the project, the BOK will issue CBDC to commercial banks, which will then create deposit tokens backed by the CBDC for consumers to use at Daiso.
The payment and settlement process is straightforward. When a customer requests a payment, the bank deducts the corresponding deposit tokens from the customer’s digital wallet, and the BOK transfers the equivalent amount of CBDC to Daiso through a blockchain-based system.
In the first round of Project Hangang, offline retailers such as Kyobo Book Centre, 7-Eleven, Ediya Coffee and Hanaro Mart participated, along with online platforms including the delivery app Ddangyo.
The seven commercial banks that took part were KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, NH Nonghyup Bank, IBK Industrial Bank of Korea and BNK Busan Bank.
However, only 42.1 percent of converted deposit tokens were actually spent.
In particular, Ddangyo, operated by Shinhan Bank, accounted for nearly half of all usage, while usage at other merchants was rare.
Under the circumstances, industry officials expected that Daiso will better serve the goal of collecting real-world payment data.
They pointed out that small, repeated payments occur more frequently there, allowing for a more precise analysis of deposit token flows.