South Korea’s leading internet-only bank, KakaoBank, has revealed plans to enter the stablecoin space, in response to a changing regulatory landscape following the election of crypto-friendly President Lee Jae-myung. The bank’s CFO, Kwon Tae-hoon, announced the development during its first-half 2025 earnings call, stating that the firm is “reviewing various methods such as issuance and custody” and intends to “actively participate” in the emerging digital asset ecosystem. This initiative is being spearheaded by Kakao’s dedicated Stablecoin Task Force, which includes leadership from Kakao’s core affiliates such as KakaoPay. The move is seen as a direct response to President Lee’s administration, which has been pushing forward legislation to legalize stablecoins and strengthen South Korea’s position in the digital asset market. KakaoBank Prepares Infrastructure, Competes with Peers On June 23, KakaoBank filed for multiple trademarks related to stablecoin services—coinciding with filings from Kookmin Bank, a key rival under KB Financial Group. In total, eight major South Korean banks are aiming to launch Korean won-pegged stablecoins by 2026, signaling an industry-wide shift toward blockchain-based financial products. Kwon noted KakaoBank’s past involvement with digital asset infrastructure , including the issuance of real-name verified accounts for crypto exchanges and participation in the Bank of Korea’s CBDC pilot. The company already manages $46.47 billion in assets and has 25.86 million users—roughly half of South Korea’s population—making it one of the most influential players in the national banking sector. The momentum behind crypto adoption in South Korea has also been amplified by global political developments. Following the U.S. election win of Donald Trump in November 2024, the number of crypto exchange users in South Korea surged past 16 million, now representing over 30% of the country’s population. Global Institutions Also Join Stablecoin Race The push from KakaoBank aligns with a broader international trend toward stablecoin adoption. A May 2025 report by digital asset infrastructure firm Fireblocks found that 90% of surveyed institutional entities were exploring stablecoin use. Governments and financial institutions around the world are increasingly viewing stablecoins as a viable tool for payments, remittances, and settlement. In April, Russia’s finance ministry discussed launching a national stablecoin, while three major Abu Dhabi institutions began developing a dirham-pegged digital currency . The post KakaoBank Moves Toward Stablecoin Services Amid Pro-Crypto Wave in South Korea appeared first on TheCoinrise.com .
