KakaoBank Prepares Stablecoin Launch Amid Regulatory Shifts in South Korea

KakaoBank, the digital banking arm of South Korea’s Kakao Group, is moving to launch its own stablecoin, aligning with regulatory developments and policy shifts in the country. During its H1 2025 earnings call, KakaoBank’s Chief Financial Officer, Kwon Tae-hoon, confirmed the bank is evaluating business models for digital asset issuance and custody, with a focus on stablecoin-related activities. The bank is working closely with a newly formed stablecoin task force within the Kakao Group, composed of senior executives from Kakao, Kakao Pay, and KakaoBank, to accelerate the initiative [1].

This strategic move follows KakaoPay’s trademark filings for potential stablecoin ticker symbols in June 2025, signaling the company’s readiness to enter the market. KakaoBank’s CFO emphasized the bank’s existing infrastructure and experience in managing crypto-related risks, including its role in real-name verified accounts for virtual asset exchanges and its involvement in KYC and AML monitoring. Additionally, KakaoBank’s prior collaboration with the Bank of Korea on a CBDC trial has provided it with valuable experience in digital finance, including digital wallet management and transaction processing [1].

KakaoBank’s financial performance further supports its foray into stablecoins. In the first half of 2025, the bank reported an 11% year-on-year increase in operating profit to 353.2 billion won ($254 million), while its deposit balance rose 19% to 63.7 trillion won ($45.8 billion). The bank also added nearly one million new users, expanding its customer base to 25.86 million, roughly half of South Korea’s population [1].

The development is part of a broader regulatory shift in South Korea, driven by President Lee Jae Myung’s push to foster a domestic stablecoin market. The government aims to reduce capital flight and promote financial innovation through a supportive policy environment. KakaoBank’s early preparations position it as a potential leader in the sector, alongside other major banks like Kookmin Bank and the Industrial Bank of Korea, which have also filed for KRW stablecoin trademarks [4].

Industry experts highlight the potential of stablecoins to facilitate real-world blockchain applications. Seo Byung-yoon of DSRV Lab’s Future Finance Research Institute notes that stablecoins represent the first tangible use of blockchain technology beyond proof-of-concept [2]. However, regulatory clarity remains a challenge, as the South Korean government is still deliberating on comprehensive stablecoin regulations.

KakaoBank’s stablecoin could integrate with its existing services, enhancing payment systems and digital banking capabilities. The company’s sizeable infrastructure and compliance readiness suggest it is well-positioned to navigate the evolving regulatory environment and deploy significant capital [1].

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