The South Korean stablecoin industry is experiencing rapid development

After taking office, South Korean President Lee Jae-myung has revitalized the South Korean cryptocurrency industry. Several commercial banks are preparing a joint project for a Korean won stablecoin, while traditional tech companies and Web3 enterprises are also making moves, hoping to seize the initiative in the increasingly fierce regional and global stablecoin competition.

Currently, the Korean National Assembly is reviewing the "Basic Law on Digital Assets" to provide a legal basis for private institutions to issue Korean Won stablecoins. Regulatory authorities are also accelerating the development of operational standards that meet international norms. The second half of 2025 to the first half of 2026 is expected to be an important period for the rapid growth of the Korean stablecoin market.

Bank Alliance Becomes a Main Force

The Bank of Korea takes a cautious stance on stablecoins, believing that they should be issued first by commercial banks that are subject to strict regulation. Currently, eight major banks are planning to establish a joint venture to issue a Korean won stablecoin, including Kookmin Bank, Shinhan Bank, and Woori Bank. The project team is considering two issuance methods: a trust model and a deposit token model. The joint venture could be established as early as the end of this year or early next year.

As the largest retail bank in South Korea, the National Bank has taken the lead in applying for trademark rights related to stablecoins. Shinhan Bank, on the other hand, partnered with Hedera as early as 2021 to pilot a Korean won stablecoin. Other participating banks, such as Woori Bank and NongHyup Bank, also have rich experience in CBDC testing and blockchain projects.

Tech Giants Actively Layout

Payment giant Kakao Pay officially launched its Korean won stablecoin business layout and has submitted multiple stablecoin trademark applications to the intellectual property office. Kakao Pay will leverage its advantages in payment and financial services to provide large-scale application scenarios for the stablecoin.

The Kaia public chain also stated that it will "fully promote the issuance of the Korean won stablecoin" on its mainnet. Kaia collaborates with super apps like Kakao Pay to achieve integrated cross-platform circulation of "on-chain + social + payment".

The established payment service provider Danal has restarted its digital currency business and has applied for multiple patents for POS terminals that support virtual asset payments. Danal has advantages in POS terminal networks and payment clearing systems.

Startups Seize the Opportunity

The blockchain startup Nexus has issued a Korean won stablecoin named KRWx on the BNB Chain and has applied for trademark registration. Nexus also plans to issue fiat stablecoins such as US dollars, Japanese yen, and euros, and is establishing a subsidiary in Hong Kong to promote international expansion.

Other Potential Participants

Samsung SDS's Nexledger enterprise-level private chain solution is seen as a potential provider of stablecoin infrastructure. LG CNS, as the contractor for the wholesale CBDC system of the Bank of Korea, also possesses core capabilities in digital currency solutions.

With regulatory policies gradually becoming clearer, the stablecoin market in South Korea is expected to usher in rapid development. Banking alliances, tech giants, and Web3 companies will engage in fierce competition in this emerging field.