South Korea Expands Digital Won Pilot to Public Transportation Payments

South Korea has taken another major step in its central bank digital currency (CBDC) journey by expanding the use of the digital won pilot program to cover public transportation payments in several major cities. The initiative, announced by the Bank of Korea on September 16, 2025, marks one of the largest real-world CBDC trials globally and positions the country as a leader in integrating digital currencies into everyday life.

The pilot, which initially focused on retail transactions in convenience stores and select online platforms, will now allow commuters to use the digital won to pay for buses, subways, and trains in Seoul, Busan, and Incheon. Commuters can load their digital won into mobile wallets linked with transportation cards or scan QR codes at transit gates to complete payments. The goal, according to the Bank of Korea, is to test the efficiency, speed, and scalability of the CBDC in handling large volumes of low-value transactions that occur daily across the country’s transit systems.

Officials emphasized that public transportation was chosen for the next phase of testing because it represents one of the most high-frequency payment environments in the economy. Millions of South Koreans rely on public transit each day, making it a critical test case for determining whether the digital won can handle large-scale adoption. Early feedback from trial participants has indicated faster payment speeds and lower transaction costs compared to existing card-based systems.

The expansion comes at a time when central banks around the world are exploring CBDCs but remain cautious about rolling out nationwide systems. South Korea’s proactive approach has attracted attention from international observers, who view the digital won project as a potential benchmark for other countries considering similar moves. By extending its pilot into public transit, South Korea is pushing the CBDC beyond controlled retail experiments and into the heart of daily consumer activity.

Local technology partners, including leading mobile payment firms and telecom operators, are working with the Bank of Korea to integrate the digital won into existing transit infrastructure. Authorities have also highlighted security and privacy features, assuring citizens that transaction data will remain protected and that the system is designed to prevent fraud and misuse.

The pilot will run for six months, during which officials will collect data on transaction volumes, system stability, and consumer adoption rates. If the results prove successful, the government is expected to consider a broader rollout of the digital won in additional sectors, including utilities and e-commerce.

Analysts believe that expanding the CBDC to transportation could accelerate digital currency adoption among the public, particularly older demographics who may be slower to adopt new financial technologies. By embedding the digital won into a service that millions of people already use daily, the Bank of Korea is creating an environment where citizens can experience the benefits of a CBDC firsthand.

The latest expansion underscores South Korea’s determination to lead in the digital finance era. While challenges such as regulatory harmonization and cross-border compatibility remain, the success of the transit pilot could bring the country significantly closer to a nationwide launch of its CBDC.