Korean Banks and Tech Firms Battle for Stablecoin Supremacy

Forged Partnerships

In the past few weeks, groups such as KB Financial Group, Shinhan Financial Group, Hana Financial Group, and Woori Financial Group have forged partnerships with tech giants including Naver, Kakao, and Samsung Electronics.

These alliances target the development of infrastructure, digital wallets, and networks needed to support stablecoin issuance and distribution.

In one example, Woori Bank is leveraging Samsung’s Galaxy/Wallet ecosystem to link its banking services with coin issuance. Meanwhile, KB, Shinha,n and Hana are teaming with Naver and are in talks with Dunamu (operator of Korea’s largest crypto exchange) to explore full-scale launches.

These moves reflect industry acknowledgement that banks lack the agility and platform reach of large tech firms; conversely, tech firms need regulated financial partners if coins are to meet legal and reserve-management requirements.

Partnerships for Stablecoin Readiness

Despite the surge in private-sector activity, stablecoins remain in a regulatory grey zone in South Korea. Domestic transactions already exceed the equivalent of USD 40 billion despite absence of a dedicated statute.

The Financial Services Commission (FSC) plans to submit a bill by late 2025 to define licensing, reserve rules and risk-management requirements for won-pegged digital coins. The bill is expected to limit stablecoins that generate yield or function like investment products. At the same time, the Bank of Korea (BOK) has made clear it favours a gradual introduction, with issuance confined initially to tightly-regulated commercial banks.

These concurrent developments reflect competing priorities. The government seeks innovation, capital retention and financial modernisation. The central bank flags risks related to monetary policy, foreign-exchange liquidity and financial stability.

Regulatory Ambitions and Bank Strategy Drive Won-Stablecoin Push

Banks appear motivated by both defensive and offensive logic. From a defensive angle, they face a growing threat from fintech and crypto-native players; issuing a Won stablecoin offers a route to safeguard payment flows and maintain customer relationships.

From an offensive standpoint, launching a stablecoin tied to Korea’s digital economy and mobile ecosystems presents fresh revenue and platform opportunity.

Fintech firms like the super-app provider Viva Republica (operator of Toss) likewise eye stablecoin issuance as a path to scale payments and expand internationally. Toss has already declared its intention to issue a won-based stablecoin once regulation allows.

The overlap between banks and fintech suggests the upcoming marketplace will involve hybrids of regulated financial institutions anchored in large platform ecosystems.

Global Benchmarking

Countries such as Japan and member states of the European Union are actively crafting frameworks for regulated stablecoins. Korea’s route, however, has distinctive features: the emphasis on won-pegged tokens and strong involvement of domestic banks and tech firms.

The country also carries experience of rapid retail crypto adoption and substantial capital flows in and out of digital assets. Past regulatory episodes, such as the “kimchi bond” market and challenges in foreign-exchange stability, underscore Korea’s particular sensitivity to new forms of digital-asset-related capital flows.

Risks, Impacts, and Market Implications

Won-backed stablecoins present several opportunities for payments and capital flows. They may reduce transaction costs, accelerate cross-border transfers, and embed digital fiat-pegs into mobile applications, while domestic issuance can help retain value that currently leaves via dollar-linked tokens and foreign crypto platforms.

The Bank of Korea has warned that rapid adoption by non-bank issuers could create monetary instability and foreign-exchange pressures. Banks are expected to implement strong reserves, risk-audit procedures, and compliance frameworks, and reliance on tech partners introduces additional operational and governance considerations.

Industry watchers expect pilot programs to launch in 2026, providing early movers with potential platform advantages, while later entrants may face regulatory and competitive catch-up.

Looking Ahead: Who Will Lead and What Comes Next

The immediate competition will revolve around orchestration of bank-tech partnerships, speed of pilot launches and regulatory clarity. The most promising sets are those where a bank with trusted balance sheet, a large-scale tech partner and a clear user ecosystem converge.

Korea’s strategy differs from jurisdictions that leave stablecoin issuance largely open: here, banks and policy authorities are shaping the front-runway. The key question is whether Korea can convert this coordinated effort into functioning digital-currency infrastructure, or whether partnerships, regulatory complexity and user adoption will slow momentum.

In any case, by aligning major financial groups with leading technology firms, South Korea is positioning itself as a pioneer in the won-stablecoin space. The competition is already underway, and the coming stages will determine which players capture the domestic market and how South Korea’s approach could shape global stablecoin frameworks.