South Korea’s KakaoBank Begins Active Development of KRW Stablecoin

South Korea’s KakaoBank has officially pushed its Korean won stablecoin project into the active development stage. The digital bank, backed by tech giant Kakao, has begun hiring blockchain engineers to build the system. Job listings on its website now seek developers skilled in smart contracts, token standards and full-node operations.

This marks the clearest signal yet that KakaoBank is no longer just researching stablecoins. It is now building one. Earlier this year, the bank’s leadership confirmed it was exploring multiple ways to enter digital finance. Those plans are now taking shape through real product development.

Kakao Group Builds Broader KRW Stablecoin Strategy

KakaoBank is not acting alone. The wider Kakao Group formed a dedicated “Korean won stablecoin task force” earlier this year. The goal is to design a full digital finance strategy around a local-currency stablecoin. In June, KakaoPay added another major signal. The payments giant filed multiple trademark applications linked to KRW-based stablecoins. These included names such as PKRW, KKRW and KRWP. 

The filings suggest Kakao is preparing for several possible issuance routes under different business units. KakaoPay already serves more than 40 million users, while Kakao’s messaging ecosystem dominates daily life in South Korea. That scale gives the group a powerful advantage if it launches a nationwide stablecoin.

Naver and Upbit Add Fuel to the Stablecoin Race

Kakao is not the only tech heavyweight entering the stablecoin race. Rival firm Naver is also building digital finance infrastructure. Its fintech arm, Naver Financial, is reportedly preparing a wallet service tied to a local stablecoin project based in Busan. At the same time, Naver is said to be working toward a deeper partnership with Upbit, South Korea’s largest crypto exchange.

NaverPay already supports around 30 million monthly users. KakaoPay averages around 24 million monthly active users. With South Korea’s total population at roughly 52 million, the competitive stakes could not be higher. Both firms appear to be targeting stablecoins as their next major growth engine. Each plans to leverage its massive consumer platforms to gain traction quickly in digital finance.

Government Push and Regulatory Friction Shape the Market

The stablecoin race also carries political weight. South Korean President Lee Jae Myung identified KRW stablecoins as a national priority after taking office earlier this year. His goal is to protect Korea’s monetary sovereignty as U.S. dollar stablecoins continue to dominate global crypto markets.

However, regulation remains a major obstacle. While several lawmakers have proposed legal frameworks for won-based stablecoins, real progress has stalled. The Bank of Korea has taken a firm position that only licensed banks should be allowed to issue KRW stablecoins. That stance has triggered resistance from tech firms and fintech platforms.

KakaoBank now sits at the center of this tension. On one hand, it is a licensed bank; on the other hand, it is a tech-driven disruptor. Therefore, as development moves forward, its project could become the blueprint for how South Korea balances innovation with financial control. Currently, one thing is clear: the KRW stablecoin race has officially entered the build phase.