Key Highlights
- KakaoBank advances its KRW stablecoin into full development and hires blockchain engineers.
- The move follows August plans for stablecoin issuance and custody under a Kakao task force.
- Regulators stay cautious as suspicious crypto transactions hit record highs in 2025.
KakaoBank, the digital banking arm of South Korean tech conglomerate Kakao, has officially begun developing a Korean-won–pegged stablecoin, according to local media reports.
The move pushes the company’s digital-asset ambitions out of the exploratory stage and into active engineering. It marks one of the most significant steps by a major Korean financial institution toward issuing a regulated, bank-backed token.
The plan began in August
KakaoBank, one of the country’s largest mobile-only banks, first signaled its plans in August. During a company performance meeting, CFO Kwon Tae-hoon said the bank was studying stablecoin issuance and custody, with a cross-group task force formed alongside KakaoPay and other Kakao affiliates.
The project gained momentum after the election of President Lee Jae-myung, who supports legalizing stablecoins and integrating digital assets into Korea’s financial system. KakaoBank has now moved into active development, hiring blockchain engineers to build the infrastructure for a KRW-pegged stablecoin.
Stablecoin launch
The product, informally referred to in local media as “Kakao Coin,” would position the company ahead of rival internet giants. Naver, for example, is reportedly preparing a wallet for a Busan-based stablecoin and exploring an acquisition of Upbit, Korea’s largest crypto exchange.
A won-stablecoin market is a stated policy priority for the South Korean government, but regulatory clarity remains incomplete. With the central bank insisting that only licensed banks can issue won-pegged tokens, KakaoBank is among the few players positioned to do so when regulations land.
Risk grows amid market expansion
The push into digital money comes as financial authorities sound alarms over rising crypto-related risks. South Korea’s Financial Intelligence Unit (FIU) reported 36,684 suspicious crypto transactions between January and August 2025, surpassing the totals from the previous two years combined.
Much of the activity is tied to hwanchigi, an illegal foreign-exchange remittance scheme that uses offshore crypto accounts to move funds back into the country.
Next door
For regulators, the growing appetite for digital finance is running in parallel with growing enforcement challenges.
For KakaoBank, the stablecoin project represents a strategic bet: advance early into regulated digital money while the government works to control the darker edges of the market.
Also read: Korea FIU Set to Impose Heavy Penalties on Crypto Exchanges
