South Korean KakaoBank is reportedly entering the growing stablecoin market with plans to launch a KRW-backed stablecoin this year.
The company CFO Kwon Tae-hoon said at KakaoBank’s first-half 2025 earnings call on Tuesday that the bank is “reviewing various methods such as issuance and custody related to the digital asset ecosystem.”
“We plan to engage actively in line with market changes,” Kwon noted, per a ZDNet Korea report on Wednesday.
Further, Kakao Group, the parent IT firm, is creating a stablecoin task force and holding weekly discussions to consolidate strategy. CEOs Chung Shin-ah (Kakao), Shin Won-keun (KakaoPay), and Yoon Ho-young (KakaoBank) will be leading the initiative.
Additionally, Kwon emphasised that KakaoBank has the risk management and technical expertise, noting the firm had participated in both phases now-cancelled Bank of Korea CBDC pilot.
President Pledges to Launch KRW-Pegged Coin
Following June 3’s election, the new government is now developing its own financial policies in South Korea. Active discussions on stablecoins are now underway, with “global companies paying close attention.”
Besides, the newly elected President Lee Jae-myung has pledged to launch a KRW-pegged coin for use in business and international trade.
The stablecoin pivot has triggered a wave of speculation in Korea’s markets. According to Bloomberg, the USDC issuer Circle became the most-traded stock among Korean retail investors.
“Circle seems to be establishing contacts with the National Assembly and financial regulators because it wants to participate in the domestic market,” unnamed domestic crypto industry executive told Korean media outlet Newsway in June.
He opined that KRW stablecoin issuance was “still a long way off.”
However, Bank of Korea Governor Lee Chang-yong still appears skeptical about Lee Jae-myung’s government’s stablecoin plans, per the Kukmin Ilbo report.
Elsewhere in Hong Kong, the stablecoin bill officially took effect on August 1, establishing a licensing regime for fiat‑referenced stablecoin issuers.
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