Korean Banks Partner with Tech Giants for Stablecoin Development

South Korean banks KB, Shinhan, Hana, and Woori are partnering with tech giants like Naver, Kakao, and Samsung to advance in the stablecoin sector. These partnerships aim to leverage tech capabilities for stablecoin development as stablecoin transactions in Korea surpass 60 trillion won ($41.15 billion), despite lacking formal legal backing.

The Financial Services Commission (FSC) plans to propose regulations for stablecoins by late 2025.
Different strategies are being employed by the financial groups:
- KB, Shinhan, and Hana Financial Groups have teamed up with Naver for fintech products and potential collaboration with Upbit's operator, Dunamu.
- Woori Bank is integrated with Samsung Wallet Money and Points, supporting the Galaxy ecosystem.
- KakaoBank is exploring stablecoin issuance and custody solutions.

In contrast to crypto trends, South Korea's KOSPI index reached a record high over 4,200 points, while crypto trading volumes on top exchanges fell over 80% year-over-year. CryptoQuant CEO Ki Young Ju attributes this to policy-driven incentives redirecting capital from real estate and crypto.