The Bank of Korea and Bank Indonesia are set to launch a cross-border QR code payment system in April 2025.
This move aims to enable travelers to conduct transactions in local currencies without the need for foreign currency exchanges.
After signing a memorandum of understanding in July 2024, the two central banks will establish a local currency transaction framework. This infrastructure supports QR code-based payments, allowing users to complete transactions seamlessly between South Korea and Indonesia.
Lowering Costs for Bilateral Trade
The Bank of Korea asserts that the system is designed to reduce foreign exchange conversion fees and lower transaction costs associated with cross-border payments. It is expected to boost bilateral trade, tourism, and consumer spending between the two countries.
In February 2025, officials from both banks reviewed implementation progress, confirming readiness for the April launch and pledging ongoing cooperation.
Future Expansion Plans
The Bank of Korea intends to extend this system into online payment environments. There are also plans to explore expanding the QR code framework to other Association of Southeast Asian Nations member states.
This initiative aligns with broader regional efforts aimed at enhancing cross-border payments and reducing reliance on traditional correspondent banking channels. Similar interoperability projects have been launched throughout Southeast Asia, facilitating secure transactions for both travelers and businesses.
