KB Kookmin Bank joins deposit token payment infrastructure project

KB Kookmin Bank said Thursday it will join the deposit token-based payment infrastructure expansion project, part of a blockchain innovation initiative led by the Ministry of Science and ICT and the Korea Internet & Security Agency.

The project runs as a private consortium led by the Korea Financial Telecommunications and Clearings Institute, with cooperation from the Ministry of Economy and Finance and the Bank of Korea, and participation from commercial banks and payment gateway companies. It aims to build a private-sector payment infrastructure for everyday public use, drawing on experience from the Bank of Korea's Project Han River in piloting institutional CBDC-based deposit tokens.

Kookmin Bank took part in the first phase of Project Han River last year, giving customers the experience of paying with CBDC at a range of online and offline merchants, including Seven-Eleven, Kyobo Book Centre, Ediya Coffee and Hyundai Home Shopping.

Through this project, Kookmin Bank will work to expand deposit token payments and improve convenience for users. Among participating banks, it has built the largest network of payment gateway partnerships. The bank plans to support merchants in accepting deposit token payments through their existing payment networks, without requiring terminal replacements or system overhauls.

The bank also plans to deepen technology cooperation with blockchain and IT small and medium-sized enterprises and startups, and to collaborate on public-sector initiatives including the Ministry of Economy and Finance's national treasury management and a pilot program for government operational expenses.

"We will continue to do our utmost not only to enhance financial convenience for our customers, but also to build an inclusive digital financial ecosystem where diverse economic participants — including small business owners — can grow together," a Kookmin Bank official said.