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Kakao Bank’s blockchain infrastructure powers stablecoin growth in South Korea

by ICN.live
November 26, 2025

Mariam Al-Yazidi

Key Points

Kakao Bank expands into blockchain-based stablecoin development with internal approval.
Naver and Dunamu finalize a 20 trillion won merger, reshaping South Korea’s fintech sector.
New stablecoin legislation in the National Assembly defines strict rules for issuers.
Regulatory clarity will determine how fast South Korea adopts won-backed stablecoins.

Kakao Bank’s blockchain infrastructure gains momentum in the stablecoin race

Kakao Bank’s blockchain infrastructure is now central to its digital finance strategy. The company has moved from research to full-scale stablecoin development, signaling a new chapter in South Korea’s crypto market. The decision follows internal legal reviews and the personal involvement of founder Kim Beom-soo, who has regained leadership focus after recent legal proceedings.

The move comes as South Korean lawmakers debate how to regulate stablecoins. As competition grows, Kakao Bank aims to merge its strong user base across messaging, payments, and banking into one blockchain-backed network.

In my view, Kakao’s approach is calculated. By building its infrastructure before the regulation is finalized, the firm positions itself to move fast once the rules are clear.

Kakao Coin project seeks mass adoption through existing networks

The Kakao Coin project is expected to launch within Kakao’s ecosystem, combining services such as KakaoTalk, Kakao Pay, and Kakao Bank. This approach allows instant exposure to millions of users.

Reports suggest that the company’s blockchain will prioritize transaction stability and user compliance. By offering a won-backed stablecoin, Kakao intends to promote safe, transparent, and regulated digital payments.

A report by TRM Labs shows that stablecoins now make up 30% of global on-chain transactions, highlighting their growing utility in everyday finance. For Kakao, this is an opportunity to become a primary issuer in Asia’s most digitally connected economy.

Highlight: Kakao Bank’s blockchain infrastructure aims to make stablecoin use mainstream in South Korea.

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Naver-Dunamu merger reshapes the fintech and crypto industry

At the same time, the Naver-Dunamu merger signals a strong shift in market power. The 20 trillion won deal joins Naver Financial, a major payment processor, with Dunamu, operator of Upbit, South Korea’s largest crypto exchange.

Naver will own 17% of the merged firm, while Song Chi-hyung, Dunamu’s founder, secures a 30% stake. The merger connects fintech and crypto capabilities under one umbrella. Analysts say this could lead to instant distribution of stablecoins across Naver’s vast payment network.

Industry observers also point to potential international ambitions, including a U.S. listing and deeper partnerships with blockchain ecosystems like Ethereum and Solana. Once legal clarity is achieved, Naver-Dunamu could become a leading issuer of won-backed stablecoins.

Highlight: The Naver-Dunamu merger combines fintech scale with crypto innovation to dominate the stablecoin market.

Regulatory debates define South Korea’s stablecoin future

The progress of South Korea’s crypto regulation remains uncertain. The National Assembly is currently reviewing several proposals, with the “Value-Stable Virtual Asset Issuance and User Protection Act” among the most advanced.

The draft law requires 100% cash or bond reserves, a 3% contingency fund, and a ten-day redemption period. It also mandates that all stablecoins be issued on public blockchains, ensuring transparency and accountability.

Under the proposal, global issuers such as Tether and Circle would need South Korean licenses to operate locally. The Financial Services Commission would handle approvals, while the Bank of Korea would monitor systemic risk.

Still, regulatory coordination remains complex. Some agencies argue over who should oversee monetary impacts, creating uncertainty for firms ready to launch new tokens.

Highlight: South Korea’s stablecoin regulation will decide how fast Kakao and Naver can issue their digital won.

The path ahead for Kakao and Naver-Dunamu

For both companies, timing is everything. Kakao has technology and user reach, while Naver-Dunamu brings trading depth and crypto experience. Their strategies show how major Korean firms are preparing for a regulated digital currency future.

If lawmakers finalize clear rules, these two firms could transform how Koreans send, save, and invest. A functioning, won-backed stablecoin ecosystem could also attract institutional capital and drive new fintech services.

From my standpoint, Kakao Bank’s blockchain infrastructure could set the technical standard for secure and transparent stablecoin transactions, while Naver’s scale accelerates adoption across commerce.

Together, they represent South Korea’s strongest attempt yet to integrate blockchain into mainstream finance.

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What is Kakao Bank’s blockchain infrastructure?

Kakao Bank’s blockchain infrastructure is a newly developed digital network designed to issue and manage its planned stablecoin, often called “Kakao Coin.” The infrastructure allows secure, fast, and transparent transactions across Kakao’s existing platforms, including messaging, banking, and payments. The initiative follows months of internal and legal review, reflecting the company’s intention to enter the crypto market responsibly. By building this system before regulation finalizes, Kakao positions itself as an early leader ready to integrate with government-approved frameworks once they are enacted.

How does the Naver-Dunamu merger affect the crypto industry?

The merger between Naver Financial and Dunamu creates one of the most powerful financial-crypto alliances in South Korea. With Naver’s massive payment infrastructure and Dunamu’s expertise in digital assets, the combined firm aims to issue and distribute stablecoins seamlessly across its platforms. This partnership could make won-backed stablecoins widely accessible and trusted, helping South Korea compete with global digital currency leaders.

What are the new stablecoin regulations under review in South Korea?

South Korea’s National Assembly is considering several stablecoin bills, including one that mandates full cash or sovereign bond reserves, a 3% contingency fund, and public blockchain issuance. These measures aim to protect users, prevent manipulation, and ensure liquidity. The law would also require all issuers, including global players like Tether, to register locally. Oversight will likely be shared between the Financial Services Commission and the Bank of Korea, though interagency jurisdiction remains under discussion.

What could the future of stablecoins in South Korea look like?

If current legislation passes, stablecoins could become a recognized financial product supported by strong consumer protection and transparent reserve management. Kakao and Naver-Dunamu would be among the first local issuers, driving innovation in payments, remittances, and digital savings. This ecosystem could transform how Koreans interact with money online, reducing reliance on traditional banking while keeping value tied to the won.

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