South Korea has taken a significant step toward stablecoin adoption with the launch of its first Korean won-backed stablecoin, “KRWIN,” in a pilot program. The digital asset was developed by fanC in partnership with financial software provider Initech, and marks the first time a private company has issued a stablecoin pegged 1:1 to the Korean won.
Unveiled on August 5, the pilot aims to assess KRWIN’s technical capabilities, including its transferability and potential for real-world use. According to The Korea Herald, the trial run will initially be limited to internal networks involving entities affiliated with fanC and Initech.
Although a public release date has yet to be confirmed, the stablecoin is expected to eventually expand into sectors such as digital payments, global remittances, and tourism.
Lee Dong-ho, a spokesperson for fanC, described the launch as a milestone in the nation’s digital finance landscape. “KRWIN will establish itself as a leading private model driving future demand for won-denominated digital assets,” he stated, emphasizing the stablecoin’s blend of financial security and blockchain innovation.
Notably, fanC filed a trademark application for KRWIN and its related technologies with the Korean Intellectual Property Office just last month—an indication that preparations for a broader rollout are already underway.
The Race to Launch South Korea’s First Korean Won-Pegged Stablecoin
As the global stablecoin race accelerates, major South Korean financial institutions are increasingly exploring the potential of launching Korean won-pegged digital assets. This surge in interest was catalyzed by newly elected President Lee Jae-myung’s pledge to support cryptocurrency assets backed by the national currency.
President Lee’s pro-crypto stance has ignited enthusiasm among retail investors and prompted several companies involved in digital finance to pivot toward the stablecoin market.
Beyond the recent pilot launch by fanC and Initech, other major players are now entering the arena. According to The Korea Herald, officials from leading crypto exchange Bithumb and fintech firm Viva Republica—operator of the popular mobile payment app Toss—are currently in discussions to form a partnership for developing stablecoin solutions.
South Korea’s largest cryptocurrency exchange, Upbit, has also joined the fray. In collaboration with fintech payment service Naverpay, the two are planning to issue their own won-backed stablecoins. However, specific details about the project have yet to be disclosed.
Resistance from the Bank of Korea
In mid-May, the Bank of Korea (BOK) issued a statement asserting that it should be granted the authority to oversee the approval process for stablecoins backed by the Korean won. The central bank reiterated its concerns about these digital assets being treated as legal tender, warning of potential threats to the country’s monetary policy.
According to the BOK, if stablecoins are widely adopted without proper regulation, they could disrupt financial stability and limit the central bank’s ability to control the money supply. As such, the BOK insists that all won-pegged stablecoins must fall under its direct supervision.
The rising interest in Korean won-backed stablecoins comes as no surprise, given the nation’s growing familiarity with USD-backed alternatives. As previously reported by crypto.news, South Korea’s Democratic Party revealed that stablecoins accounted for nearly half of user activity, as many investors shifted funds to overseas exchanges.
In fact, during the first quarter of 2025, cryptocurrency outflows from South Korea nearly reached 57 trillion won—a figure that has amplified regulatory concerns and pushed the central bank to take a more active role in shaping the country’s digital asset framework.
