South Korea’s Banks Team Up with Big Tech to Launch Stablecoins
South Korea’s biggest financial institutions are racing to launch stablecoins, and they’re turning to tech giants for help.
According to a recent report from The Korea Times, major banks — KB, Shinhan, Hana, and Woori Financial Groups — are forming partnerships with companies like Naver, Kakao, and Samsung Electronics to build the technology needed for stablecoin issuance and transactions.
Even though the government hasn’t officially recognized stablecoins as a payment system yet, domestic stablecoin transaction volumes have already topped $41 billion, showing strong adoption in the financial sector.
Why Banks Need Tech Partners
Developing the infrastructure for stablecoins is time-consuming and complex, so banks are relying on tech companies’ platforms and ecosystems.
An industry official explained:
“Tech giants already have strong platform ecosystems and are best positioned to secure practical use cases once stablecoins are issued.”
Essentially, the banks provide financial credibility, while the tech companies provide the technical know-how to issue, manage, and integrate stablecoins into existing digital services.
Who’s Partnering with Whom?
- KB, Shinhan, and Hana have partnered with Naver on joint products and initiatives.
- These banks are also exploring partnerships with Dunamu, operator of Upbit, Korea’s largest crypto exchange.
- Woori Financial Group is expanding its long-standing collaboration with Samsung Electronics, particularly Samsung Wallet, which already has the ability to issue and manage digital coins.
- Woori also owns 5% of BDACS, a digital asset custody firm that successfully launched a KRW-pegged stablecoin (KRW1) in September with Woori Bank.
At the moment, fintech firms are mostly technical partners, while banks are expected to be the primary issuers of stablecoins, though it’s not yet clear whether this will be done individually or via a consortium of banks.
Regulators Prepare First Stablecoin Bill
South Korean regulators are getting ready to propose the country’s first stablecoin framework to the National Assembly by the end of the year. Dubbed “phase 2 of cryptocurrency law”, the bill aims to:
- Clarify how won-pegged stablecoins can be issued, launched, and managed.
- Set rules for financial institutions involved in stablecoin issuance.
- Ban yield-earning or interest on stablecoins, similar to the U.S. GENIUS Act.
Financial Services Commission Chairman Lee Eok-Won confirmed that holders of stablecoins under the proposed rules won’t be able to earn interest or other yield, keeping these tokens strictly as a payment and transaction tool.
What This Means
South Korea is positioning itself to join the global stablecoin wave while keeping the market tightly regulated. By combining the financial strength of banks with the technical expertise of big tech, the country’s largest institutions are preparing for a rapid rollout once the legal framework is in place.
The partnerships, pilot projects like KRW1, and new regulations together signal that South Korea could become a major hub for regulated, won-pegged stablecoins in the near future.
