KakaoBank is preparing to enter South Koreaâs fast-growing stablecoin sector, according to local reports.
In its first-half earnings call on Tuesday, KakaoBank CFO Kwon Tae-hoon said the firm is âactively consideringâ roles in both stablecoin issuance and custody, with participation aligned to the countryâs shifting digital asset policies.
âWe plan to engage actively in line with market changes,â Kwon said, adding that KakaoBankâs internal task force is working with other Kakao units to consolidate strategy.
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The move adds a regulated online bank to the list of Korean fintechs jumping into the stablecoin race after the Bank of Korea (BOK) shelved its central bank digital currency (CBDC) pilot in June.
The project, as CoinDesk previously reported had reached the testing phase with commercial banks and abruptly halted after President Lee Jae-myungâs administration submitted legislation enabling the local issuance of stablecoins.
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Kwon emphasized KakaoBankâs technical readiness, noting the firm had participated in both phases of the now-cancelled BOK pilot.
âWe built and operated wallets and handled exchanges and transfers,â he said, pointing to operational experience most firms in the sector canât yet claim.
He also cited three years of compliance work issuing real-name accounts for crypto exchanges, giving the bank a head start in implementing the kind of KYC and AML frameworks regulators are likely to demand for fiat-pegged tokens.
KakaoBank is part of a weekly stablecoin-focused task force within the Kakao ecosystem, working alongside KakaoPay and the parent group. CEOs Chung Shin-ah (Kakao), Shin Won-keun (KakaoPay), and Yoon Ho-young (KakaoBank) are leading the initiative.
The stablecoin pivot has ignited a wave of speculation and retail activity in Koreaâs markets. Circle stock, which went public in June, became the most-purchased foreign equity among Korean retail investors.
This move is happening in parallel Hong Kong’s stablecoin plans, where local firms are lining up to get an issuance license after interest in the People’s Bank of China’s CBDC failed to materialize.
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