The Bank of Korea has expanded its digital won pilot program, Project Hangang, to include Kyongnam Bank and iM Bank, bringing the total number of participating banks to nine. This second phase will test bank-issued deposit tokens backed by central bank infrastructure, focusing on their use for government subsidy payments and nationwide transfers. The initiative aims to reduce transaction costs for businesses by offering a lower-cost payment alternative to credit card fees. The expansion comes amid delays in South Korea's Digital Asset Basic Act due to regulatory disagreements over stablecoin issuance. The new phase will enable peer-to-peer transfers, a feature that was challenging in the initial phase. The government plans to start disbursing subsidies in digital currency within the first half of the year, with electric vehicle charging infrastructure as a potential early use case. Additionally, the Bank of Korea is exploring digital currency payments for AI agents that facilitate automated purchases.