South Korea’s biggest financial holding companies are racing to join forces with major tech firms as the country prepares to introduce its first stablecoin regulatory framework.
Banks and Tech Giants Form New Alliances
According to The Korea Times, South Korea’s top four financial groups KB, Shinhan, Hana, and Woori are forming partnerships with tech powerhouses Naver, Kakao, and Samsung Electronics to develop the technological foundation needed for issuing and managing stablecoins.
Even though stablecoins are not yet officially recognized as payment instruments by the government, domestic transaction volumes have already exceeded $41 billion, signaling a growing appetite for blockchain-based financial innovation.
An industry official told the media that the partnerships are essential, as banks would take significant time to build stablecoin infrastructure from scratch.
“Tech giants already have strong platform ecosystems and are best positioned to secure practical use cases once stablecoins are issued,” the source said.
Won-Pegged Stablecoins Gain Momentum
The discussions primarily focus on launching Korean won-pegged stablecoins, with banks expected to play the role of primary issuers. It’s still unclear whether this will happen through a unified consortium or individual launches.
Fintech firms, for now, are seen mostly as technical collaborators in the broader stablecoin push.
So far, KB, Shinhan, and Hana have expanded their collaborations with Naver, exploring co-developed financial products and blockchain pilots. These institutions are also in early talks with Dunamu, the operator of Upbit, Korea’s largest crypto exchange.
Meanwhile, Woori Financial Group is strengthening its existing partnership with Samsung Electronics, particularly through Samsung Wallet, the company’s digital asset management platform. Unlike Naver and Kakao, Samsung already has the infrastructure to issue and manage coins directly.
Woori also holds a 5% stake in BDACS, a digital asset custody firm that recently launched KRW1, a won-pegged stablecoin on Avalanche, as part of a successful proof-of-concept with Woori Bank.
Regulators Prepare South Korea’s First Stablecoin Law
South Korea’s financial regulators are preparing to submit the country’s first comprehensive stablecoin bill expected by the end of this year marking what officials call the “phase two” of national crypto regulation.
The bill aims to establish clear rules for issuing and managing stablecoins, particularly those backed by the Korean won. It would also ban yield-earning stablecoins, mirroring the GENIUS Act in the United States.
In October, Financial Services Commission Chairman Lee Eok-Won confirmed that under the proposed framework, stablecoin holders will not be able to earn interest or yield from their tokens a move designed to prevent speculative risk while maintaining financial stability.
Outlook: A New Era of Digital Finance in Korea
With banks providing trust, tech firms delivering innovation, and regulators setting clear guardrails, South Korea is rapidly positioning itself to become a leader in institutional-grade stablecoin adoption.
The coming months leading up to the year-end legislation will likely determine how this balance between financial tradition and digital transformation unfolds in Asia’s fourth-largest economy.
