KakaoBank, the banking arm of South Korea’s tech giant Kakao Corporation, is moving ahead with plans to launch stablecoin services. The push comes amid a friendlier regulatory climate following the June election of President Lee Jae-myung, who has introduced legislation to legalise stablecoins.
Speaking during the company’s first-half 2025 earnings call, Chief Financial Officer Kwon Tae-hoon said the bank is “reviewing various methods such as issuance and custody” and intends to “actively participate” in the digital asset ecosystem, according to ZDNet Korea.
The initiative is being led in collaboration with Kakao’s Stablecoin Task Force, which includes senior leadership from its affiliates, including KakaoPay.
Competition in South Korea’s Stablecoin Race
KakaoBank’s trademark filings for stablecoin-related services on 23 June placed it in direct competition with rival Kookmin Bank, a subsidiary of KB Financial Group. Eight other South Korean banks are also working on Korean won-pegged stablecoins, with planned launches by 2026.
Kwon highlighted the bank’s experience in the digital asset sector, noting its role in wallet services, exchange operations, and participation in the Bank of Korea’s central bank digital currency pilot. He added that over the past three years, the bank has issued real-name verified accounts for crypto exchanges and implemented Know Your Customer (KYC) and Anti-Money Laundering (AML) monitoring systems.
A Growing Crypto Market
KakaoBank’s customer base totals 25.86 million—nearly half of South Korea’s 51.7 million population—and it manages assets worth $46.47 billion as of March 2025.
The country’s crypto exchange user base has surged past 16 million, representing more than 30% of the population. This growth was partly fuelled by US President Donald Trump’s election victory in November 2024.
Stock Market Reaction
KakaoBank’s shares saw a sharp 19.3% rise after the June trademark filings, jumping from 30,400 Korean won ($22.60) to 37,000 won ($27). However, the latest stablecoin update prompted only modest market movement.
On Wednesday, the stock peaked at $20.10 during the session before closing at $19.43. By Thursday’s close, it had risen slightly by 0.93% to $19.60.
