South Korean financial giants join forces with Samsung and Kakao to seize the stablecoin market, positioning themselves ahead of the year-end legislation

According to ChainCatcher, citing a report from CCN, major South Korean financial holding companies are actively partnering with tech giants such as Samsung Electronics, Naver, and Kakao to gain a foothold in the country's soon-to-be-opened stablecoin market.

With the Financial Services Commission of South Korea planning to submit a comprehensive stablecoin bill to the National Assembly by the end of 2025, financial groups such as KB, Shinhan, Hana, and Woori are accelerating their strategies, aiming to launch the first batch of KRW-pegged stablecoins before the regulatory framework is officially implemented. Once passed, the bill will formally legalize KRW-backed stablecoins and allow banks to issue them either independently or in partnership with private entities.

Since building blockchain and payment infrastructure from scratch could take years, banks are choosing to ally with tech giants that already possess robust platform ecosystems. KB Kookmin Bank has applied for more than 17 trademarks for the "KB KRW" stablecoin and established a dedicated department; Shinhan Financial Group is piloting a KRW-backed token on its food delivery app; Hana Financial Group has set up a digital asset task force; and Woori Financial Group is collaborating with Samsung Electronics on Samsung Wallet.

Although currently operating in a regulatory grey area, domestic stablecoin trading volume in South Korea has already surpassed 60 trillion KRW (approximately $41 billion) this year, with major financial institutions hoping to establish market credibility early. By ensuring regulatory compliance through banks and leveraging the convenience and scalability provided by tech companies in a hybrid model, South Korea may develop a unique digital currency system.