Broader Ambitions within Kakao Group

South Korean digital banking giant KakaoBank is reportedly moving its stablecoin initiative into an active development phase. This shift is highlighted by recent job postings for blockchain backend developers with deep knowledge of smart contracts, token standards, and operating full nodes.

The move aligns with earlier statements from KakaoBank’s Chief Financial Officer, Kwon Tae-hoon, who noted during the company’s first-half 2025 earnings report in August that the bank was exploring digital asset issuance and custody. Prior to this, Kakao’s major financial divisions had already formed a task force to map out a strategy for a won-pegged stablecoin.

Further evidence of the group’s coordinated effort emerged in June when its payments subsidiary, KakaoPay, filed six copyright applications for stablecoin ticker symbols. The proposed tickers, such as PKRW and KKRW, appear to blend the company’s name with the Korean won (KRW).

Competition Heats Up with Rival Naver

Kakao’s push into stablecoins comes as its chief rival, tech giant Naver, is also making significant inroads. Naver is reportedly launching a wallet service for a local stablecoin project in Busan, and its fintech arm, Naver Financial, is rumored to be in merger talks with South Korea’s largest crypto exchange, Upbit.

Both companies are poised to leverage their massive user bases to gain an edge in digital finance. KakaoPay serves 42 million members, with 24 million using the service monthly, while Naver’s NaverPay is used by 30 million people each month. For perspective, South Korea’s total population is approximately 51.7 million.

Navigating an Unclear Regulatory Landscape

This race for a domestic stablecoin is fueled by a national initiative from President Lee Jae Myung, who has prioritized the development of a won-stablecoin market to bolster monetary sovereignty against the dominance of U.S. dollar-pegged stablecoins.

Despite this top-down support, progress has been slow. Legislative efforts to create a clear regulatory framework have stalled, complicated by the Bank of Korea’s insistence that only registered banks should be permitted to issue won-stablecoins—a stance that has drawn criticism from other local industry players.