South Korea's Stablecoin Market Poised for Growth: Longer Forces Compete for the Lead

After the new government of South Korea came to power, the cryptocurrency industry became rapidly active. Not only are several commercial banks working together to prepare for the Korean won stablecoin project, but traditional tech giants and Web3 companies are also making their moves, striving to gain an advantage in the increasingly fierce regional and even global stablecoin competition.

At the same time, Congress is reviewing relevant bills to provide a legal basis for private institutions to issue Korean won stablecoins, and regulatory authorities are also accelerating the establishment of operational norms. The second half of 2025 to the first half of 2026 is expected to be a critical period for explosive growth in the Korean stablecoin market.

Banking Alliance Leading the Way

The Bank of Korea has a cautious attitude towards stablecoins, believing that they should be issued first by strictly regulated commercial banks. Currently, eight major banks are planning to establish a joint venture to launch a Korean won stablecoin, with participants including National Bank, Shinhan Bank, and other well-known financial institutions.

The project team is considering two issuance schemes: the trust model and the deposit token model. The joint venture may be established as early as the end of this year or early next year. Among them, the National Bank has been the most proactive and has initiated the relevant trademark application process. Shinhan Bank began its stablecoin pilot as early as 2021.

Technology Giants' Layout

Kakao Pay, as a leading company in the payment sector in South Korea, is the fastest to act in the layout of stablecoins. The company has submitted multiple trademark applications related to stablecoins, covering areas such as virtual asset trading and electronic transfers. Kakao Pay is expected to leverage its advantages in social, payment, and financial services to provide large-scale application scenarios for stablecoins.

The Kaia public chain, closely related to Kakao Pay, also stated that it will fully promote the issuance of the Korean won stablecoin. Kaia plans to collaborate with super applications to achieve integrated cross-chain and cross-platform circulation of "on-chain + social + payment."

Startups Eager to Try

The established payment service provider Danal has resumed its digital currency business and has applied for multiple patents for POS terminals supporting virtual asset payments. The blockchain startup Nexus has pre-issued a Korean won stablecoin named KRWx on the BNB Chain and submitted related trademark applications.

Potential Participants

Samsung SDS's Nexledger and LG CNS's CBDC solutions are both regarded as potential stablecoin infrastructure providers. These IT giants possess core capabilities in on-chain asset management, including minting, clearing, auditing, and custody. Once policies are relaxed, they are expected to quickly penetrate the stablecoin market.

As the regulatory framework gradually becomes clearer, competition in the South Korean stablecoin market will become increasingly fierce. Banks, technology companies, and startup teams are actively positioning themselves, and it is worth paying continuous attention to who can seize the market high ground first.