The competition in the Korean won stablecoin market is fierce: multiple forces are vying to layout.

After taking office, South Korean President Lee Jae-myung quickly revitalized the South Korean cryptocurrency industry. Not only are several commercial banks preparing to jointly issue a Korean won stablecoin, but traditional tech giants and Web3 companies are also entering the fray, hoping to seize the initiative in the increasingly fierce regional and even global stablecoin competition.

At the same time, the South Korean 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 formulation of operational norms in line with international standards. These signs indicate that the second half of 2025 to the first half of 2026 could be a crucial period for the rapid growth of the South Korean stablecoin market.

Korea Bank Alliance

Although the Bank of Korea adopts a cautious stance towards stablecoins, it still believes that commercial banks are the most suitable institutions for the first batch of issuing Korean won stablecoins. According to reports, eight major banks in South Korea plan to establish a joint venture to issue Korean won stablecoins, with participating banks including KB Kookmin Bank, Shinhan Bank, and Woori Bank. The project team is considering two issuance plans: a trust model and a deposit token model.

As the largest retail bank in South Korea, the National Bank has been the most proactive in the stablecoin sector and has begun applying for related trademark rights. Shinhan Bank partnered with Hedera as early as 2021 to pilot a Korean won stablecoin. Other participating banks, such as Woori Bank and NH Agricultural Cooperative Bank, have also accumulated rich experience in projects like CBDC testing and interbank real-time payment systems.

Kakao Pay and Kaia

Kakao Pay, as a leading company in the payment sector in South Korea, has been quick to act in the layout of the Korean won stablecoin. On June 22, Kakao Pay submitted 18 trademark applications related to stablecoins to the Korean Intellectual Property Office, covering areas such as virtual asset financial transactions and electronic transfers. Kakao Pay plans to leverage its advantages in social, payment, and financial services to provide large-scale application scenarios for stablecoins.

Kaia is an EVM-compatible public chain formed by the merger of Klaytn and Finschia, aiming to connect 250 million users of Kakao Talk and LINE. Kaia's chairman, Sam Seo, stated that they will "fully promote the issuance of the Korean won stablecoin" on the Kaia mainnet. Kaia has partnered with Tether to introduce USDT, laying the technical and ecological foundation for the subsequent issuance of the Korean won stablecoin.

Danal

The veteran payment service provider Danal is also regarded as an important player in the stablecoin market. Danal launched PayCoin (PCI) in 2019, conducting early explorations in the virtual asset payment field. With the South Korean government clarifying its support for local currency-pegged stablecoins, Danal has once again initiated its digital currency business. The company has submitted multiple patent applications related to POS terminals that support virtual asset payments to the Korean Patent Office.

Danal's accumulation in POS terminal networks and payment clearing systems provides a natural advantage in its stablecoin business processes. Its POS terminals can directly recognize and settle on-chain tokens, simplifying the user payment process; the backend system can seamlessly connect with off-chain reserve management, providing a foundation for compliance audits and reserve proof.

Nexus

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

Nexus CEO Jang Hyun guk emphasized the importance and opportunities of stablecoin in the globalization of the digital economy. The company plans to establish a Hong Kong subsidiary, Nexus Stable HK, to promote the internationalization of stablecoins.

Other Potential Participants

Samsung SDS's Nexledger and LG CNS, as mature enterprise-level blockchain solution providers, are also regarded as potential stablecoin infrastructure providers. The technological accumulation of these companies in enterprise-level blockchain, CBDC, and digital currency solutions gives them the potential to occupy an important position in the stablecoin infrastructure field through technological output.

With the advancement of the "Digital Asset Basic Law", private institutions will gradually obtain the qualification to issue stablecoins. These tech giants are expected to play an important role in the South Korean stablecoin market due to their core capabilities in minting, clearing, auditing, custody, and other on-chain asset management.