Competition in the Korean Won Stablecoin Market Heats Up: Various Parties Compete for Leadership Position

Before taking office, South Korean President Lee Jae-myung proposed innovative measures to support "local currency pegged stablecoins" aimed at curbing wealth outflow and enhancing the competitiveness of the country's digital financial ecosystem. After the Lee Jae-myung government came to power, South Korea's cryptocurrency industry quickly became active: eight major commercial banks prepared a joint project for a KRW stablecoin, and traditional tech giants and Web3 companies also made moves, striving to seize the initiative in the increasingly fierce competition for stablecoins both regionally and globally.

At the same time, the National Assembly is reviewing the "Basic Law on Digital Assets," which provides a legal basis for private institutions to issue Korean won stablecoins. Financial regulatory authorities are also accelerating the establishment of operational norms that align with international standards. The second half of 2025 to the first half of 2026 may become a window period for the "explosive" growth of the Korean stablecoin market. This article systematically sorts and deeply analyzes the main participants, business models, and innovative trends in the Korean stablecoin market, focusing on several potential issuers.

Korea Bank Alliance

The Bank of Korea has maintained a cautious attitude towards whether stablecoins can serve as substitutes for legal tender. The bank's governor, Lee Chang-yong, stated that they are working with relevant institutions to develop a regulatory framework for stablecoins to ensure their stability and practicality, while also preventing them from being used to evade foreign exchange controls.

Under this policy guidance, banking institutions have become the most competitive participants in the Korean won stablecoin sector. Lee Sang-dae, the Senior Deputy Governor of the Bank of Korea, stated that stablecoins denominated in won should first be issued by strictly regulated commercial banks, and after accumulating experience, they can gradually expand to the non-bank sector.

According to reports, eight major banks in South Korea plan to prepare for the establishment of a joint venture to issue a Korean won stablecoin. The participating banks include Kookmin Bank, Shinhan Bank, Woori Bank, Nonghyup Bank, Korea Development Bank, Suhyup Bank, Citibank Korea, and Standard Chartered Bank Korea. The Open Blockchain and Decentralized Identifier Association, as well as the Korea Financial Telecommunications and Clearing Institute, will participate in coordination and cooperation.

The project team is considering two types of stablecoin issuance models: trust model and deposit token model. Currently, banks are discussing the joint construction of infrastructure, and a joint venture may be established as early as the end of this year or early next year.

Among the participating banks, National Bank is the most active, having initiated the process of acquiring trademarks related to stablecoins. Shinhan Bank partnered with Hedera for a pilot project of a Korean won stablecoin as early as 2021 and participated this year in a demonstration experiment for cross-border remittances between Korea and Japan based on stablecoins. Other banks such as Woori Bank and NH Nonghyup Bank have also accumulated rich experience in CBDC testing, interbank RTGS, and blockchain projects.

Kakao Pay and Kaia

Kakao Pay, as a leading enterprise in the payment sector in South Korea, has shown active engagement in the layout of the KRW stablecoin. The company has submitted 18 trademark applications for stablecoins combining "KRW", "K", and "P" to the Korean Intellectual Property Office, covering areas such as virtual asset financial transactions, electronic transfers, and intermediary services. Kakao Pay will actively cooperate with the legislative process of the "Digital Asset Basic Law" and seek to become one of the first compliant stablecoin issuers.

Kaia is an EVM-compatible Layer 1 public chain formed by the merger of Klaytn and Finschia. KaiaChain Chairman Sam Seo stated that they will "fully promote the issuance of Korean won stablecoin" on the Kaia mainnet. Kaia has launched local USDT and is collaborating with Tether to introduce USD₮, laying the foundation for the subsequent KRW stablecoin.

Kaia is collaborating with super applications like Kakao Pay and LINE NEXT to plan a stablecoin project, aimed at achieving integrated cross-chain and cross-platform circulation of "on-chain + social + payment". With the ecological synergy of the underlying public chain and terminal payments, once the policy is released, its stablecoin project is expected to be launched quickly.

Danal

The well-established payment service provider Danal is also widely favored. The company launched PayCoin in 2019, conducting early explorations in the field of virtual asset payments. With the improvement of the policy environment, Danal has restarted its digital currency business and has submitted multiple patent applications to the Korean Patent Office for "POS terminals supporting virtual asset payments and their operational methods."

Danal has inherent advantages at the technical level. Its POS terminal network can directly recognize and settle on-chain tokens, simplifying the user payment path; the backend system can seamlessly connect with off-chain reserve management, supporting compliance audits and reserve proof.

Nexus

Blockchain startup Nexus has expressed its desire to become the first issuer of a Korean won stablecoin. The company has issued a Korean won stablecoin named KRWx on the BNB Chain and has submitted a trademark registration application to the Korean Patent Office. Nexus has also applied for trademarks for fiat stablecoins such as the US dollar, Japanese yen, and euro.

Nexus CEO Jang Hyun guk emphasized the practicality of stablecoin and its opportunities within the global digital economy system. The company plans to establish a Hong Kong subsidiary, Nexus Stable HK, to promote the internationalization of stablecoin.

Other Potential Participants

Samsung SDS's Nexledger and LG CNS's CBDC solutions are also seen as potential providers of stablecoin infrastructure. These two IT solution providers have accumulated rich experience in enterprise-level blockchain and digital currency systems, possessing the core technical capabilities required for stablecoins.

With the advancement of the "Basic Law on Digital Assets", private institutions will gradually qualify for stablecoin issuance. Samsung SDS and LG CNS are expected to occupy an important position in the stablecoin infrastructure supply field through technological output.