Kaia to Launch Won-Pegged Stablecoin Amid South Korea's Crypto-Friendly Shift

Coin WorldMonday, Jun 9, 2025 8:04 am ET
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has announced its intention to launch a stablecoin pegged to the South Korean won, following the inauguration of President Lee Jae-myung. Lee, a left-leaning politician, had included several crypto-friendly promises in his campaign, distinguishing him from other candidates. One of these promises was the issuance of a won-based stablecoin, which Kaia is now set to deliver.

The launch of a won-based stablecoin faces legal challenges, as South Korea's constitution grants the Bank of Korea exclusive authority over currency issuance. However, Lee's Democratic Party is supportive of private-sector innovation in the crypto space. Lawmaker Min Byoung-dug, who leads the party’s

Committee, has expressed support for private-issued stablecoins and is preparing to propose the Digital Asset Basic Act. This comprehensive legislative framework aims to provide a regulatory environment for the crypto industry.

Kaia's interest in stablecoins is significant due to its backing by

, a tech conglomerate that provides essential digital services in South Korea, including messaging, navigation, and finance. The enthusiasm for the new administration has been evident among both traditional and crypto investors. A survey cited by multiple local outlets indicated that nearly 60% of respondents plan to expand their crypto holdings under Lee’s tenure.

This optimism was reflected in the stock market, with payment firms Kakao Pay and Danal both closing up 29.9% on Monday. Kakao Pay, in particular, is seen as a potential beneficiary of a domestic stablecoin due to its digital wallet infrastructure and QR code payment system. The firm is the fintech arm of Kakao, whose Web3 subsidiary developed the Klaytn blockchain, now merged with Japanese messenger LINE-backed Finschia to form Kaia.

The rally in payment stocks also indicates growing confidence in the swift advancement of stablecoin regulation. Kim Yong-beom, a former vice finance minister and until recently head of research at blockchain venture capitalist Hashed, has been appointed as President Lee’s chief policy officer. Lawmaker Min’s forthcoming Digital Asset Basic Act is expected to include provisions for legalizing and overseeing won-pegged stablecoins, suggesting that legislative support is gathering behind the plan.

The main uncertainty surrounding Lee’s presidency has been his multiple ongoing criminal trials, which began before his election. The most politically sensitive case, involving alleged election law violations during his 2022 campaign, was initially scheduled to resume on June 18. However, on Monday, the Seoul High Court ruled that Article 84 of the Constitution applies, indefinitely postponing the trial. This decision clears the political path for Lee’s administration to pursue its crypto agenda. Four other trials remain pending, with delays or suspensions now likely to depend on each court’s interpretation.