Isabella García
KakaoBank, South Korea’s leading digital bank and a subsidiary of tech powerhouse Kakao, is strategically preparing to enter the stablecoin market, aligning with national regulatory momentum and growing interest in blockchain-based finance.
In its first-half 2025 earnings announcement, KakaoBank’s Chief Financial Officer Kwon Tae-hoon confirmed the company is exploring new opportunities in the digital asset space, including potential ventures in stablecoin issuance and custody.
“We are currently reviewing multiple digital finance projects, including digital asset custody and issuance,” Kwon stated. “Our efforts are closely coordinated with Kakao’s stablecoin task force.”
Stablecoin Innovation Aligned With National Policy
KakaoBank’s strategic shift comes amid growing support from South Korea’s government to establish a won-pegged stablecoin ecosystem. Newly elected President Lee Jae Myung has made the development of a KRW-based stablecoin a key policy goal, aiming to reduce capital outflows and strengthen the country’s digital economy.
Following the election, a bill was introduced by the ruling party to lay the groundwork for stablecoin regulation, sparking rapid moves in the private sector. In June, KakaoPay—another affiliate of the Kakao Group—filed trademark applications for stablecoin-related ticker symbols, signaling a group-wide shift toward digital asset innovation.
Built-In Compliance and Technological Readiness
Kwon emphasized that “stability and technical expertise are essential pillars for any successful stablecoin project.” He pointed out that KakaoBank already has real-world experience managing crypto-related compliance operations:
“For the past three years, we’ve issued real-name verified accounts for crypto exchanges and operated advanced Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.”
In addition to its crypto compliance experience, KakaoBank has also participated in the Bank of Korea’s CBDC (Central Bank Digital Currency) pilot, handling aspects such as digital wallets, remittances, and transaction processing.
Strong Financial Growth Signals Readiness for Expansion
Beyond its crypto ambitions, KakaoBank continues to post strong financial results. In H1 2025, the bank reported an 11% year-over-year increase in operating profit, reaching ₩353.2 billion (approximately $254 million). Its total deposits climbed 19%, amounting to ₩63.7 trillion ($45.8 billion).
Perhaps most impressively, KakaoBank added nearly one million new users in just six months, expanding its customer base to 25.86 million—nearly half of South Korea’s total population.
