What To Know:
- South Korea and LG CNS successfully demonstrated Korea’s first AI-driven digital currency auto-payment system under Project Hangang.
- The system allows AI agents to autonomously search, compare, decide, and complete payments using blockchain-based deposit tokens.
- The test supports future plans to use digital currency for subsidies, vouchers, and automated payments as early as 2026.
South Korea is successfully striding toward automated finance after LG CNS and the Bank of Korea successfully demonstrated the nation’s first agentic AI-powered digital currency auto-payment system.
South Korea Strides Toward AI Digital Currency Auto-Payment Test
The test, announced on January 22, is the first time artificial intelligence in Korea completed the entire payment process on its own. This includes searching for products to make purchase decisions and executing transactions using crypto.
The demonstration forms part of “Project Hangang,” the central bank’s ongoing initiative aimed at examining real-world applications of digital currency infrastructure. The latest test focused on if autonomous AI agents could work safely and reliably within a regulated financial environment.
According to LG CNS, the project confirmed that digital currency payments can be automated without human intervention once conditions are pre-approved. As per local media reports, the system relied on deposit tokens, which are digitized representations of bank deposits issued on a blockchain platform overseen by the central bank.
These tokens function similarly to existing money but allow programmable conditions and real-time settlement. During the test, artificial intelligence handled every stage of a commercial transaction while operating within predefined spending limits set by the user.
For the demonstration, LG CNS and the Bank of Korea created a virtual digital content creator. The scenario mirrored real business conditions in which creators must purchase images, audio files, and AI services from multiple online platforms.
In current practice, creators often face repeated logins, fragmented payment systems, and limited price comparisons. As a result, purchases may be completed quickly but not always efficiently.
The AI auto-payment model aimed to resolve these inefficiencies. Once authority was delegated, AI agents automatically searched multiple platforms, compared pricing and quality, selected appropriate content, and completed payments using digital currency.
The system enabled direct communication between buyer and seller agents. Payments occurred through the transfer of deposit tokens between digital wallets on the central bank’s blockchain platform. All transactions were executed within the parameters approved by the user in advance.
The Bank of Korea stated that the test verified both technical stability and operational accuracy. It also showed how programmable money could support automated commerce without compromising control or security.
Researchers involved in Project Hangang view the trial as a basic step for broader digital currency use. The central bank plans to continue examining how deposit tokens could coexist with stablecoins and other blockchain-based payment instruments.
LG CNS serves as the primary contractor for Project Hangang and has been responsible for blockchain development and platform construction. The company previously completed the central bank’s digital currency infrastructure and conducted real transaction testing between April and June last year.
Those earlier trials involved roughly 80,000 users across seven commercial banks. The testing period evaluated settlement speed, system resilience, and interoperability between banks operating on a shared blockchain ledger.
Following that phase, LG CNS and the Bank of Korea began preparing a follow-up pilot project focused on government subsidy execution. This initiative is expected to demonstrate how digital currency platforms can be used for public fund distribution.
Kim Hong-geun, executive vice president and head of LG CNS’s Digital Business Division, said the company had confirmed the technical feasibility of an auto-payment structure built on agentic AI. He added that LG CNS would continue supporting the central bank’s preparation of future payment infrastructure.
The South Korean government is also moving to align national policy with these developments. The Digital Currency Utilization Plan for Advanced National Treasury Fund Management is scheduled for inclusion in the country’s 2026 Economic Growth Strategy.
Under this plan, the government intends to incorporate the Bank of Korea’s experimental digital currency system into public finance operations. Deposit tokens may be used for vouchers, subsidies, and targeted disbursements.
Also Read: South Korea Passes Law Allowing Issuance of Tokenized Securities
