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South Korea’s leading digital bank, KakaoBank, is set to launch a Korean won (KRW)-backed stablecoin in 2025, positioning itself as a pioneer in the nation’s digital asset market. Announced during its H1 2025 earnings call on August 5, 2025, the initiative aims to leverage blockchain for efficient, low-cost domestic and cross-border transactions, per ZDNet Korea. CFO Kwon Tae-hoon emphasized the bank’s exploration of stablecoin issuance and custody, backed by a Kakao Group task force involving KakaoPay and Kakao.
With 25.86 million users—nearly half of South Korea’s population—KakaoBank plans to integrate the stablecoin into Kakao’s ecosystem, including KakaoTalk, enhancing digital payments, e-commerce, and remittances. The bank’s robust financials, with an 11% profit increase to 353.2 billion won ($254 million) and 19% deposit growth to 63.7 trillion won, support this ambitious pivot.
South Korea’s regulatory landscape, bolstered by President Lee Jae-myung’s pro-crypto policies, aligns with KakaoBank’s plans. The National Assembly is reviewing the Digital Asset Framework Act, which could legalize KRW-pegged stablecoins by 2026, though Bank of Korea Governor Lee Chang-yong remains cautious about their impact on monetary policy. KakaoBank’s experience in the now-canceled Bank of Korea CBDC pilot ensures compliance readiness.
Competing with fintechs like fanC, which launched the KRWIN stablecoin, and banks like Kookmin, KakaoBank’s first-mover advantage and 18 trademark filings (e.g., BKRW, KRWB) signal strong intent. This stablecoin could redefine digital finance in South Korea, driving mainstream adoption and challenging global players like USDC if regulatory hurdles are cleared.
