Major holding companies in South Korea are accelerating efforts to forge partnerships with major tech firms, notably Naver, Kakao, and Samsung Electronics, as they seek an advantage in the rapidly emerging stablecoin market.

The move, led by KB, Shinhan, Hana, and Woori Financial Groups, comes as domestic stablecoin transactions have already surpassed 60 trillion won (US$41.15 billion), despite the market not yet being fully legalised.

According to The Korea Times, financial regulators plan to submit a bill regulating stablecoins to the National Assembly by the end of 2025.

While discussions are still ongoing, banks, the flagship subsidiaries of the holding groups, are viewed as potential primary issuers of stablecoins pegged to the Korean won, either independently or through joint consortia with related institutions.

“Under these circumstances, alliances with big tech firms are considered essential, since it would take banks considerable time to develop the necessary technology on their own,”

an industry official said.

“Tech giants, on the other hand, already have strong platform ecosystems and are best positioned to secure practical use cases once stablecoins are issued.”

Other affiliates within the financial groups, including credit card, insurance, securities, and asset management units, are also expected to prepare for stablecoin-related services, such as managing reserves and risks, and linking existing payment and remittance systems with digital coins.

KB Financial Group, Shinhan Financial Group, and Hana Financial Group have already been collaborating with Naver on joint product launches and other initiatives.

Each is reportedly exploring the possibility of expanding into three-way partnerships with Naver and Dunamu, the operator of Korea’s largest cryptocurrency exchange, Upbit, following merger and acquisition discussions between the two companies.

Woori Financial Group, meanwhile, is deepening its collaboration with Samsung Electronics by leveraging its long-standing main banking relationship with Woori Bank.

The partnership involves Samsung Wallet, available on Galaxy smartphones, with Woori Bank serving as the exclusive operator of Samsung Wallet Money and Points.

“While companies like Naver and Kakao are expected to take leading roles in the crypto market by partnering with financial firms, Samsung Electronics also has the capability and operational capacity to issue and manage coins,”

another industry official said.

Financial groups are also expanding their crypto-focused teams and continuing in-house testing and verification.

KB Kookmin Bank has become the country’s first commercial bank to file 17 trademarks combining its brand name, KB, with “KRW”, intended to serve as a future ticker code for a won-backed stablecoin.

Shinhan Financial Group has been conducting pilot experiments to test how stablecoins could be used before legalisation, including through its in-house developed delivery app.

The group is also exploring ways to expand global usage of a won-backed stablecoin through its partnerships with Japan’s SBJ Bank and Shinhan Vietnam Bank.

Hana Financial Group has announced plans to establish a digital asset task force under the direct supervision of Chairman Ham Young-joo.

The task force will consolidate group-wide capabilities in response to the institutionalisation and expansion of the digital asset market.

Woori Financial Group has additionally acquired a 5% stake in digital asset custody firm BDACS.

 

Featured image credit: Edited by Fintech News Hong Kong, based on image by freepik