KakaoBank, the banking subsidiary of South Korean tech giant Kakao Corporation, is reportedly accelerating its plans to enter the stablecoin market amid a shifting regulatory landscape following the election of pro-crypto President Lee Jae-myung.
During the bank’s first-half 2025 earnings call, Chief Financial Officer Kwon Tae-hoon stated that the company is “reviewing various methods such as issuance and custody,” and “plans to actively participate” in the “digital asset ecosystem,” according to a report by ZDNet Korea.
Kwon noted that the initiative is being driven in collaboration with Kakao’s Stablecoin Task Force, which includes senior leadership from key affiliates such as KakaoPay.
KakaoBank’s move into stablecoins comes after President Lee’s June election, which has spurred progress on several crypto-related legislative efforts, including a bill aimed at legalizing stablecoins.
KakaoBank setting the stage
KakaoBank filed stablecoin-related trademark applications on June 23, coinciding with a similar move by rival Kookmin Bank, a subsidiary of KB Financial Group. They are among nine major South Korean banks preparing to launch Korean won-pegged stablecoins by 2026.
According to reports, KakaoBank CFO Kwon Tae-hoon highlighted the company’s prior involvement in digital assets, stating it has “successfully conducted wallet openings and exchanges,” and participated in the Bank of Korea’s central bank digital currency (CBDC) pilot.
“For the past three years, we’ve been issuing real-name verified accounts for virtual asset exchanges and implementing risk management measures, including Know Your Customer (KYC) and Anti-Money Laundering (AML) monitoring,” Kwon added.
As of March 2025, KakaoBank serves 25.86 million users—around half of South Korea’s 51.7 million population—and manages $46.47 billion in assets.
The number of crypto exchange users in South Korea has surpassed 16 million, accounting for more than 30% of the country’s population. The surge followed a boost in market sentiment after U.S. President Donald Trump’s election victory last November.
KakaoBank stock holds steady
KakaoBank’s stock previously surged following its stablecoin-related trademark filings, climbing from $22.60 to $27 (37,000 Korean won), marking a 19.3% increase.
However, after the latest update on its stablecoin plans, the stock saw only modest movement. On Wednesday, it briefly peaked at 27,825 won ($20.10) before slipping to 26,900 won ($19.43) by market close.
In Thursday’s trading session, the stock posted a minor gain of 0.93%, closing at 27,150 won ($19.60).
The bank has been operating since 2016 and was founded through a partnership between Korea Investment Holdings and Kakao Corp.
Global interest in stablecoin adoption grows
Interest in stablecoin adoption is growing among major companies and governments worldwide.
According to a May 14 report from enterprise-grade digital asset platform Fireblocks, 90% of institutional participants surveyed are exploring stablecoin use in their operations.
On the government side, a Russian finance ministry official proposed developing a state-backed stablecoin in April. That same month, three major financial institutions in Abu Dhabi announced a collaboration to launch a dirham-pegged stablecoin.
