- KakaoBank has moved its won-pegged stablecoin project to the development phase.
- Recruitment is underway for blockchain backend developers with expertise in smart contracts and token standards.
- Regulatory uncertainty remains, with the Bank of Korea limiting issuance to registered banks.
KakaoBank, the digital banking arm of South Korea’s tech giant Kakao, has officially progressed its local currency-pegged stablecoin initiative. The bank’s official website shows recruitment for blockchain service backend developers. Candidates must have deep knowledge of smart contracts, token standards, and transaction management. They also need experience operating full nodes.
This move signals that KakaoBank is transitioning from planning to actual development. Earlier in 2025, the bank set up a won-stablecoin task force alongside other Kakao financial divisions. The goal is to explore ways to build a digital finance ecosystem. KakaoBank’s CFO, Kwon Tae-hoon, indicated the bank is reviewing options in digital finance, including issuing or custodizing digital assets.
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KakaoBank Expand Digital Finance with Stablecoins
Kakao enters the stablecoin market in light of Naver’s plans for the launch of a wallet service in a local stablecoin project in Busan. Naver Financial, the fintech platform under Naver, is said to be merging with Upbit, South Korea’s biggest cryptocurrency exchange.
The two technology giants aim at tapping the large number of users they have. KakaoPay has 42 million members, with 24 million using the services on a monthly basis. NaverPay has 30 million subscribers on a monthly basis. The total population of South Korea stands at 51.7 million.
The Kakao Group has filed numerous copyright registrations for stablecoin tickers, grouping the company’s brand and the Korean won. These are part of the wider plans the company has to include stablecoins in its financial and payment services.
Regulatory Hurdles Shape Korea’s Stablecoin Market
The South Korean won-stablecoin market has seen increased activity since President Lee Jae-Myung listed it among the sectors he considers important in the bid to protect the country’s monetary sovereignty. When the government showed interest in the industry, the pace of development through adoption has since stalled.
The Bank of Korea has clarified that the issuance of stablecoins pegged to the won can only be conducted by registered banks. There has been some resistance among the locally involved parties. The development project initiated by KakaoBank takes place against the backdrop of a conservative regulatory environment. There has to be a balancing act on the part of firms between development and avoidance of conflict with the government.
With South Korea’s largest technology businesses escalating the development pace of stablecoins, the industry has come to represent a competitive environment. KakaoBank and Naver are aligning themselves in order to capitalize on the demand for digital finance and government-promoted developments, despite the need for legal certainty.
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