Four of South Korea’s largest financial institutions are teaming up with major technology firms to capitalize on the growing global interest in stablecoins, according to a recent report by The Korea Times.
KB Financial Group, Shinhan Financial Group, Hana Financial Group, and Woori Financial Group have all pursued partnerships with tech giants like Naver, Kakao, and Samsung Electronics to build the infrastructure needed for stablecoin issuance and transactions.
While stablecoins are not yet officially recognized as a payment method by the government, domestic transaction volumes have already surpassed $41.15 billion amid increasing adoption in the financial sector.
A South Korean industry official explained that collaboration with tech firms is critical for developing the necessary technology, as banks would require significant time to build their own systems. “Tech giants already have strong platform ecosystems and are best positioned to secure practical use cases once stablecoins are issued,” the official said.
Discussions around stablecoins pegged to the Korean won have largely focused on banks as the likely primary issuers, though it remains unclear whether issuance will occur through a consortium or individual entities. Fintech companies are expected to play primarily technical roles in the stablecoin wave.
Currently, KB, Shinhan, and Hana have formed partnerships with Naver for joint product launches and other initiatives, and they are exploring potential collaborations with Dunamu, operator of Korea’s largest crypto exchange, Upbit. Meanwhile, Woori has expanded its longstanding partnership with Samsung Electronics, particularly with its digital wallet platform, Samsung Wallet, which already has the capacity to issue and manage coins.
Woori also holds a 5% stake in BDACS, a digital asset custody firm. BDACS successfully conducted a proof-of-concept for its KRW-pegged stablecoin, KRW1, in partnership with Woori Bank on September 17.
Regulatory Framework on the Horizon
South Korean regulators are preparing a bill to regulate stablecoins, expected to be submitted to the National Assembly by the end of the year. Known as “phase 2 of cryptocurrency law,” the legislation aims to provide the country’s first unified framework for stablecoin issuance, clarifying how won-pegged tokens can be issued, launched, and managed.
Under the proposed rules, stablecoin holders would be prohibited from earning interest or yield, a provision similar to the U.S. GENIUS Act, which also bans stablecoin issuers from offering yield to holders.
