Kakao, One of South Korea's Leading Technology Companies, is Preparing to Enter the Stablecoin Sector! Here Are the Details

KakaoBank, the digital banking arm of Kakao, one of South Korea's leading technology companies, is preparing to make a strong entry into the country's rapidly developing stablecoin market.

KakaoBank Signals Entry into South Korea's Stablecoin Market

According to local media reports, KakaoBank Chief Financial Officer (CFO) Kwon Tae-hoon stated at the meeting where the bank announced its first-half 2025 financial results that it is evaluating various options in the digital finance arena. These options include issuing digital assets or offering custody services.

Kwon emphasized that the online-only digital bank is working with Kakao Group's stablecoin task force to prepare for this. Speaking to ZDNet Korea, Kwon said:

“The most critical factors for stablecoins are stability and technological competence. For the past three years, we have been providing real-name accounts to cryptocurrency exchanges, effectively implementing risk management processes based on know-your-customer (KYC) and anti-money laundering (AML).”

Kwon also stated that they participated in the South Korean Central Bank's digital currency (CBDC) trials and that they were operating digital wallet, transaction and money transfer infrastructures within this scope.

Preparation for KRW-Based Stablecoin

KakaoBank's move comes as the South Korean won (KRW)-based stablecoin market is taking shape, a space supported by recently inaugurated President Lee Jae Myung.

During his election campaign, Lee promised to promote a local currency-based stablecoin market to prevent capital outflows. Following his election victory, a ruling party lawmaker introduced a bill to parliament that would establish a basic regulatory framework for KRW stablecoins.

The private sector responded quickly to these developments. KakaoPay, the payments arm of Kakao Group, was one of the first to file trademark applications for stablecoin symbols in June.

*This is not investment advice.