KakaoBank is preparing to enter South Korea’s fast-growing stablecoin sector, according to local reports.
In its first-half earnings call on Tuesday, KakaoBank CFO Kwon Tae-hoon stated that the firm is “actively considering” roles in both stablecoin issuance and custody, aligning its participation with the country’s evolving digital asset policies.
“We plan to engage actively in line with market changes,” Kwon noted, adding that KakaoBank’s internal task force is collaborating with other units within Kakao to consolidate strategy.
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The move includes a regulated online bank joining the ranks of Korean fintechs diving into the stablecoin race after the Bank of Korea (BOK) paused its central bank digital currency (CBDC) pilot in June.
The project had reached the testing phase with commercial banks but was abruptly halted after President Lee Jae-myung’s administration submitted legislation enabling the local issuance of stablecoins.
Kwon emphasized KakaoBank’s technical readiness, highlighting the firm’s participation in both phases of the now-canceled BOK pilot.
“We built and operated wallets and handled exchanges and transfers,” he stated, referencing operational experience that most firms in the sector cannot yet claim.
He also mentioned three years of compliance work issuing real-name accounts for crypto exchanges, providing the bank a head start in implementing the KYC and AML frameworks regulators are likely to demand for fiat-pegged tokens.
KakaoBank is part of a weekly stablecoin-focused task force within the Kakao ecosystem, collaborating with KakaoPay and the parent group. CEOs Chung Shin-ah (Kakao), Shin Won-keun (KakaoPay), and Yoon Ho-young (KakaoBank) are spearheading the initiative.
The stablecoin pivot has sparked a wave of speculation and retail activity in Korea’s markets. Circle stock, which went public in June, became the most-purchased foreign equity among Korean retail investors.
This development is occurring alongside Hong Kong’s stablecoin plans, where local firms are poised to apply for issuance licenses as interest in the People’s Bank of China’s CBDC has not materialized.
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