South Korea Banks Plan Won-Pegged Stablecoin to Cut Dollar Dependence

South Korea’s financial sector is making a strategic move to issue a won-pegged stablecoin, with the country’s largest commercial banks leading a joint plan. Eight of South Korea’s top banks—KB Kookmin, Shinhan, Woori, Nonghyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and SC First Bank—have formed a consortium with the Open Blockchain and DID Association and the Financial Settlement Institute. The initiative is aimed at reducing reliance on foreign, dollar-backed stablecoins in the market and is supported by the country’s new president and fast-track legislation.

The team is centered on developing a stablecoin backed by the Korean won to support domestic financial sovereignty. KB Kookmin, South Korea’s largest bank and a consortium member, has filed 17 trademark applications with the Korea Intellectual Property Rights Information Service (KIPRIS). The trademarks include ticker symbols such as KBKRW, KRWKB, KBST, and KRWST. The filings cover software for virtual currency use and blockchain-based cryptocurrency transaction management, showing the banks’ preparation for a digital currency launch.

This industry-led charge is backed by strong political and legislative tailwinds. Newly elected President Lee Jae Myung has publicly pledged to approve and promote won-backed stablecoins in collaboration with private sector partners. Furthering this agenda, South Korean lawmaker Min Byeong-deok recently proposed legislation aimed at fast-tracking the approval process for stablecoins. Together, these actions show a coordinated national effort to establish South Korea as a leader with a robust and competitive digital asset framework.

Separately, South Korean fintech firm KakaoPay has submitted 18 trademark applications related to potential KRW-backed stablecoins. These include marks such as “KRWKP,” “KWRP,” and “KPKRW,” registered under financial services categories like virtual asset transactions and electronic transfers. KakaoPay representatives have described these filings as precautionary to secure branding rights ahead of regulatory clarity. The push toward pegged stablecoins aligns with recent political and legislative momentum.

South Korea’s financial sector is making a strategic move to issue a won-pegged stablecoin, with the country’s largest commercial banks leading a joint plan. The initiative comes as regulators begin outlining new rules for stablecoins and crypto ETFs, part of a broader national effort to strengthen the domestic market and assert financial sovereignty in the digital age. This move is aimed at reducing reliance on foreign, dollar-backed stablecoins in the market and is supported by the country’s new president and fast-track legislation.