The Korean stablecoin market is ushering in development opportunities, with multiple parties competing for the initiative.

Since the new government took office in South Korea, the cryptocurrency industry has welcomed new development opportunities. Several commercial banks are preparing a joint project for the Korean won stablecoin, while tech giants and Web3 companies are also making moves, hoping to gain an advantage in the increasingly fierce competition for stablecoins. Meanwhile, the National Assembly is reviewing relevant bills to provide a legal basis for private institutions to issue Korean won stablecoins, and regulatory bodies are also accelerating the establishment of norms. It is expected that the second half of 2025 to the first half of 2026 may become a key period for the rapid growth of the Korean stablecoin market.

Bank Alliance Preemptive Strike

Although the Bank of Korea takes a cautious stance on stablecoins, it still believes that they should be launched first by strictly regulated commercial banks. Currently, eight major banks in South Korea plan to establish a joint venture to issue a won stablecoin, with participating banks including KB Kookmin Bank, Shinhan Bank, and Woori Bank. The project team is considering two issuance methods: a trust model and a deposit token model, with the joint venture possibly being established as early as the end of this year or the beginning of next year.

Among them, the National Bank has been the most proactive and has initiated the relevant trademark application process. Shinhan Bank has previously collaborated with Hedera to conduct a pilot for the Korean won stablecoin and participated in cross-border remittance experiments between Korea and Japan based on stablecoins. Other participating banks, such as Woori Bank and Nonghyup Bank, have also accumulated rich experience in areas such as CBDC testing and interbank payments.

Tech Giants Eager to Try

Kakao Pay, as a leading enterprise in the payment sector in South Korea, has been actively involved in the layout of stablecoins. It has submitted multiple trademark applications related to stablecoins to the Intellectual Property Office, covering areas such as virtual asset trading and electronic transfers. Kakao Pay will also collaborate with ecosystem companies like Kakao Bank to provide a wide range of application scenarios for stablecoins.

The Kaia public chain plans to collaborate with super applications like Kakao Pay and LINE NEXT to launch stablecoins that circulate across chains and platforms. Leveraging the synergistic advantages of the underlying public chain and payment terminals, Kaia is expected to quickly launch stablecoin products once policies are relaxed.

Payment companies are poised for action

The established payment service provider Danal is also actively laying out plans. The company has submitted multiple patent applications for POS terminals that support virtual asset payments, preparing for future stablecoin payment scenarios. Danal's accumulation in the POS terminal network and payment clearing systems will provide advantages for its stablecoin business.

The blockchain startup Nexus took the lead in issuing a stablecoin named KRWx, pegged to the Korean won, on the BNB Chain and applied for the relevant trademark. Nexus also plans to establish a subsidiary in Hong Kong to promote the internationalization of its stablecoin.

Other Potential Participants

Samsung SDS's Nexledger, as a mature enterprise-level private blockchain solution, has the core features required for issuing stablecoins. The industry expects that Samsung SDS may become a stablecoin infrastructure provider.

LG CNS, as a contractor for the wholesale CBDC project of the Bank of Korea, possesses core capabilities in on-chain asset management. With the advancement of relevant legislation, LG CNS is expected to occupy the role of an infrastructure supplier through technological output.

The South Korean stablecoin market is entering a period of rapid development, with multiple participants actively laying out their strategies. As the regulatory framework gradually becomes clearer, the future market landscape will be more defined. Innovations and competition from all sides are expected to help South Korea secure an important position in the global stablecoin arena.