Competition in the South Korean stablecoin market intensifies: multiple forces vie for the initiative

After the new government in South Korea took office, the cryptocurrency industry welcomed new development opportunities. President Lee Jae-myung proposed during his campaign to support the innovation of "local currency-pegged stablecoins" aimed at enhancing the competitiveness of the domestic digital financial ecosystem. With favorable policies being released, the South Korean stablecoin market is showing a competitive landscape of multiple forces vying for dominance.

Bank Alliance Holds Dominant Position

Under the cautious attitude of regulatory authorities, banking institutions have become the most competitive participants in the current Korean won stablecoin sector. According to reports, eight major commercial banks are planning to prepare for the establishment of a joint venture to issue Korean won stablecoins, including Kookmin Bank, Shinhan Bank, and Woori Bank. The project team is considering two issuance schemes: a trust model and a deposit token model, with the joint venture expected to be established as early as the end of this year or early next year.

Among them, the National Bank has performed the most actively and has initiated the application process for relevant trademark rights. Shinhan Bank has advantages in technology and business innovation due to its previous pilot experience in cooperation with Hedera and its exploration in the field of cross-border remittances. Institutions such as Woori Bank and Nonghyup Bank have accumulated rich experience in projects like CBDC testing and interbank real-time gross settlement systems, providing a solid technical foundation for the banking alliance.

Tech Giants Eager to Try

As a leading enterprise in the payment sector in South Korea, Kakao Pay has been active in its layout of the Korean won stablecoin. The company has submitted multiple trademark applications related to stablecoins to the Intellectual Property Office, covering areas such as virtual asset trading and electronic transfers. Leveraging its leading position in the mobile payment market and the synergistic advantages of its parent company's ecosystem, Kakao Pay is expected to achieve breakthroughs in the integration of social, payment, and financial services.

Another blockchain platform closely collaborating with Kakao Pay is Kaia. As an EVM-compatible public chain formed by the merger of Klaytn and Finschia, Kaia boasts a large user base and mature technological accumulation. The chairman of the public chain has publicly stated that they will fully promote the issuance of the Korean won stablecoin on the mainnet, laying the foundation for the construction of an "on-chain + social + payment" integrated ecosystem.

Established Payment Giants Restart Layout

Payment service provider Danal has also relaunched its digital currency business. The company has submitted multiple patent applications related to POS terminals that support virtual asset payments to the patent office, preparing technical reserves for future stablecoin payment scenarios. With years of accumulated POS terminal network and payment clearing system, Danal has inherent advantages in the stablecoin business process.

Blockchain Startups Seize Opportunities

The blockchain startup Nexus has issued a Korean won stablecoin named KRWx on the BNB Chain and has submitted a related trademark registration application. The company's CEO emphasized the practical value of the stablecoin and plans to launch more fiat-collateralized stablecoins, while also setting up a subsidiary in Hong Kong to advance its international layout.

Other Potential Participants

Samsung SDS's Nexledger, as a mature enterprise-level private blockchain solution, possesses the core technological features required for stablecoins and is seen as a potential infrastructure provider. LG CNS, as the official contractor for the South Korean central bank's wholesale CBDC system, has accumulated rich experience in the digital currency field and may also participate in the stablecoin market through technology export in the future.

With the advancement of the "Basic Law on Digital Assets" and the gradual improvement of the regulatory framework, the second half of 2025 to the first half of 2026 could become a critical period for the rapid growth of the South Korean stablecoin market. In this intense competition, who can stand out in terms of compliance, technological innovation, and business models will determine the future landscape of the South Korean stablecoin market.