12-05-2025 
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KakaoBank, a South Korean-based digital bank, is reportedly preparing to support a won-backed stablecoin in the coming months, taking preemptive steps ahead of impending regulations.
According to a report, the digital bank is developing a smart contract-based FX settlement system, which is expected to power its upcoming stablecoin offering. The report hinges its claim on several job boards, indicating that KakaoBank is recruiting developers for its newly minted blockchain service.
A cursory glance at the listings suggests that the bank is seeking developers to establish the technical foundation for a stablecoin-powered FX settlement system. The team will focus on contract execution, full-node operations, and the back-end systems required to issue and hold digital assets.
In mid-2025, reports emerged that KakaoBank’s parent company was nearing a stablecoin launch, amid a shifting regulatory landscape for the offering in South Korea. Dubbed Kakao Coin, the stablecoin offering is expected to enhance payments within Kakao services, facilitate merchant payments, remittances, and settlement assets for fintech partners.
Already, Kakao’s blockchain partner Kaia has registered a raft of trademarks with the Korean Intellectual Property Office, revolving around a won-based stablecoin.
Despite pockets of activity around blockchain and digital assets, KakaoBank has yet to issue an official disclosure or provide a timeline for a launch date. Sam Seo, chairman of Kaia DLT Foundation, revealed that counterparties are maintaining a policy of strict confidentiality, forcing partners to keep a tight lid on progress.
“Discussions related to stablecoins are extremely sensitive right now, so I’m not able to comment on the article,” said Seo. “For now, the only thing I can share is that Kaia is in talks with several teams in Korea about a KRW stablecoin POC.”
Sector players hold onto their horses
Several financial sector players eyeing the launch of won-backed stablecoins have adopted a cautious approach. Recent bickering among lawmakers over the regulatory direction of U.S.-backed stablecoin has complicated their rollouts, with parties split on whether stablecoin deposits should attract interest.
Meanwhile, the central bank argued that banks should take the lead on won-backed stablecoins, while warning of dire de-peg risks associated with these offerings. Another concern for potential issuers is the lack of clear use cases, as dollar-backed stablecoins currently corner a large share of the market.
Upbit set to be acquired by South Korean tech giant in $10.3 billion deal
Naver Financial is inching toward the acquisition of South Korea’s largest digital asset exchange, Upbit, in a seismic deal worth around $10.3 billion.
Naver Financial has agreed to absorb Dunamu, the operator and parent company of Upbit, in an all-stock deal. Details gleaned from a filing revealed that Naver will issue 2.54 new shares for every share in Dunamu as part of the high-profile acquisition.If the deal is approved, Dunamu’s leadership will automatically become the largest shareholders in Naver Financial, despite the acquisition being made as a wholly owned subsidiary. With preliminary agreements reached, the deal requires the express consent of South Korea’s Fair Trade Commission to proceed.
Both entities will continue their operations independently, with a clause providing for future collaboration to trigger growth. While not explicitly stated, pundits note that future cooperation between the two companies is likely to revolve around stablecoins amid the changing regulatory landscape in South Korea.
“In addition, they will review various restructuring plans to secure future growth engines through functional and organic cooperation between the two companies,” read the agreement.
Both companies have unveiled stablecoin plans, eager to capitalize on the growing popularity of the offering following the U.S. passing the GENIUS Act into law. As a primer, Naver has developed a layer-2 Ethereum network to facilitate stablecoin transactions and retail payments.
Pundits predict that the merger will lead to the launch of a South Korean won-pegged stablecoin in the coming months. A potential launch will support cross-platform transfers while offering the potential for scale and supporting South Korea’s global push for stablecoin dominance.
However, the regulatory environment for stablecoins is still evolving with lawmakers conflicted over its direction. While the central bank has assumed regulatory oversight, executives are warning of de-pegging risks while urging traditional banks to take the lead in issuance.
Previous regulatory issues involving Upbit may hinder the merger, as authorities investigate the exchange over alleged breaches.
A red-hot streak for Naver
The Naver-Dunamu merger caps a lengthy streak of ecosystem activity for the South Korean financial powerhouse. In 2024, Naver Corp. announced plans to double down on artificial intelligence (AI), reaffirming its commitment to developing tailor-made models for the South Korean market.
Previously, Naver and South Korea’s Kakao merged their blockchain projects to launch the Kaia public ledger. A previous attempt by Naver to purchase a stake in Bithumb fell through, with the company turning its gaze to other sector players.
Watch | Cut Costs & Streamline Payments: The Case for Stablecoins
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