By Zen, PANews
South Korea's stablecoin market is heating up as major players across banking, technology, and Web3 sectors compete to launch the dominant KRW-pegged stablecoin. With President Lee Jae-myung's administration actively supporting blockchain innovation and the National Assembly drafting the _Digital Asset Basic Act_, analysts predict explosive growth between late 2025 and mid-2026. This article examines the key competitors shaping Korea's stablecoin landscape.
The Banking Consortium: Institutional Heavyweights Enter the Arena
Eight major Korean banks are collaborating on a joint stablecoin initiative through a forthcoming consortium:
- KB Kookmin Bank (retail market leader)
- Shinhan Bank (pioneered 2021 stablecoin pilot)
- Woori Bank & NH NongHyup Bank (cross-border payment specialists)
- Industrial Bank of Korea (SME financing focus)
- Citibank Korea & Standard Chartered Korea (international network advantages)
Two operational models under consideration:
- Trust-Based Issuance: Segregated client funds backing tokens
- Deposit-Token Model: Direct bank deposit peg
👉 Discover how institutional adoption is reshaping crypto markets
Tech Titans: Kakao Pay's Payment Empire Meets Kaia's Blockchain
Kakao Pay (Korea's Alipay equivalent) has filed 18 trademark applications for KRW stablecoin branding, signaling aggressive expansion plans. Its advantages include:
- 60%+ penetration in Korean digital payments
- Synergy with KakaoTalk's 53M monthly active users
- Existing infrastructure for mobile-to-blockchain integration
Meanwhile, Kaia Chain (merged Klaytn/Finschia L1) is positioning itself as the technical backbone for stablecoin circulation across:
- Kakao's messaging ecosystem
- LINE's Japanese user base
- Cross-border remittance corridors
Web3 Challengers: From Legacy Payments to DeFi Integration
Danal's Second Act
The PayCoin creator is rebooting its digital currency strategy with:
- Patent filings for stablecoin POS terminals
- Established merchant payment networks
- Compliance-ready reserve auditing systems
Nexus' First-Mover Gambit
This startup has preemptively launched KRWx on BNB Chain while pursuing:
- Multi-currency stablecoin suite (USDx, JPYx, EURx)
- Hong Kong subsidiary for international expansion
- Gaming and metaverse payment integrations
Infrastructure Providers Waiting in the Wings
Samsung SDS' Nexledger: Enterprise-grade blockchain with:
- 3,000+ TPS capacity
- Regulatory compliance features
LG CNS: CBDC platform developer positioned to power:
- Institutional stablecoin issuance
- Wholesale settlement systems
FAQ: Korea's Stablecoin Landscape Explained
Q: When will KRW stablecoins launch commercially?
A: Pilot programs may begin late 2025, with full rollout contingent on Digital Asset Basic Act passage in 2026.
Q: How will these differ from existing stablecoins?
A: Native KRW pegging reduces FX risk for Korean users while enabling local regulatory oversight.
Q: What's the central bank's stance?
A: BOK advocates gradual, bank-led introduction to maintain monetary policy control.
Q: Which sectors will drive adoption?
A: Remittances (👉 cross-border crypto solutions), e-commerce, and GameFi are likely early adopters.
Q: How does this impact global stablecoin competition?
A: Success could position KRW as the Asian digital currency alternative to USD-dominated stablecoins.
Q: Are non-bank issuers viable?
A: Tech firms may lead in consumer applications, but banks control critical settlement infrastructure.
The race to dominate Korea's stablecoin future has begun - with the winners poised to redefine digital finance across Asia's fourth-largest economy.