The Korean stablecoin market is booming: Various players are actively positioning themselves

With the South Korean government's clear policy direction supporting the pegging of the local currency to stablecoins, the South Korean cryptocurrency industry is welcoming new opportunities. Several commercial banks are preparing a joint project for the KRW stablecoin, and tech giants and Web3 companies are also entering the fray, hoping to gain an advantage in the regional and even global stablecoin competition.

The National Assembly is reviewing the "Basic Law on Digital Assets" to provide a legal basis for private institutions to issue Korean won stablecoins. Financial regulatory agencies are also accelerating the formulation of relevant regulations. The second half of 2025 to the first half of 2026 is expected to be a key period for rapid growth in the South Korean stablecoin market.

Bank Alliance Leads Stablecoin Development

The Bank of Korea has a cautious attitude towards stablecoins, believing that they should first be issued by strictly regulated commercial banks. Eight major banks plan to establish a joint venture to launch a Korean won stablecoin, with participants including KB Kookmin Bank, Shinhan Bank, Woori Bank, and others. The project team is considering two issuance schemes: a trust model and a deposit token model, with the joint venture potentially being established by the end of this year or early next year.

KB Kookmin Bank, as the largest retail bank in South Korea, was the first to apply for related trademark rights. Shinhan Bank had already collaborated with Hedera on a stablecoin pilot as early as 2021. Woori Bank, NH Nonghyup Bank, and others have also accumulated rich experience in CBDC testing and blockchain projects.

Tech Giants Actively Layout

Payment giant Kakao Pay officially launched its Korean won stablecoin business and submitted 18 related trademark applications. Kakao Pay can leverage its advantages in social, payment, and financial services to provide a vast array of application scenarios for the stablecoin.

The Kaia public chain plans to fully promote the issuance of the Korean won stablecoin on its mainnet. Kaia collaborates with super applications such as Kakao Pay and LINE NEXT, aiming to achieve integrated cross-chain and cross-platform circulation of "on-chain + social + payment."

Payment service provider Danal is also making technical preparations for stablecoin payment scenarios and has submitted multiple related patent applications. Danal has advantages in POS terminal networks and payment clearing systems.

Web3 Startups Seize Opportunities

Blockchain startup Nexus has issued a Korean won stablecoin named KRWx on the BNB Chain and has applied for relevant trademarks. Nexus also plans to launch more fiat-backed stablecoins and establish a subsidiary in Hong Kong to promote international expansion.

Samsung SDS's Nexledger and LG CNS's CBDC solutions are also seen as potential stablecoin infrastructure providers. They have accumulated core capabilities in on-chain asset management such as minting, clearing, auditing, and custody.

As regulations become clearer and market demand grows, more participants will enter the South Korean stablecoin space. Banks, tech giants, and Web3 companies will compete in different segments, jointly promoting the innovative development of South Korea's digital financial ecosystem.