South Korea’s leading digital bank, KakaoBank, has advanced from the research phase to the development stage of its stablecoin project pegged to the Korean won. As announced on their official website, the company is actively seeking backend developers for its Blockchain services. The recruitment listings highlight a demand for advanced knowledge in areas such as smart contract architecture, token standards, and full node operations.
Kakao Group’s Digital Finance Ecosystem Initiative
KakaoBank first revealed its strategy to pivot towards digital finance in the first half of 2025. In a financial presentation in August, the bank’s CFO, Kwon Tae-hoon, indicated that they were evaluating various models, including the issuance or custody services of cryptocurrency. In line with this vision, KakaoBank has established a special task force to coordinate won-backed stablecoin initiatives alongside other financial subsidiaries within the Kakao Group.
In June, KakaoPay accelerated the corporate groundwork of the stablecoin project by filing six different trademark applications (PKRW, KKRW, KRWP, KPKRW, KRWKP, and KRWK). These applications symbolize the merger of both Kakao and KakaoPay brands with the Korean won (KRW).
The Cryptocurrency Race among Tech Giants
Kakao’s stablecoin venture follows closely on the heels of Naver, which is developing a digital wallet for a local stablecoin project in Busan. Reports suggest that Naver Financial is in the process of merging with the country’s largest crypto exchange, Upbit. With NaverPay boasting 30 million and KakaoPay 24 million monthly active users, nearly the entire South Korean population of 51.7 million is covered by these platforms.
Both tech giants aim to transform their extensive user bases into the new growth drivers of digital finance. Particularly, the definition provided by South Korean President Lee Jae Myung of the local stablecoin market as a strategy to maintain national currency sovereignty influences the direction of the sector. However, the absence of a permanent legal framework means that the regulatory process is evolving contentiously between the Bank of Korea and industry players. While the Central Bank advocates only registered banks for issuing won-based stablecoins, this stance provokes reactions from fintech companies.