South Korea’s four largest banks are accelerating efforts to issue stablecoins as the country prepares legislation to regulate the digital assets.
KB Kookmin, Shinhan, Hana, and Woori Bank are all considering meetings next week with Circle President Heath Tarbert, who will visit Seoul. Circle is the U.S.-based company behind the dollar-pegged stablecoin USD Coin (USDC).
The banks confirmed they received a meeting proposal from Circle but said details on timing and participants remain undecided due to a non-disclosure agreement. Still, industry analysts note that few institutions would decline talks with one of the world’s leading stablecoin issuers, given the race to secure a foothold in digital asset markets.
Discussions are expected to focus on dollar-based stablecoin circulation in South Korea, cross-border payments, and the potential issuance of a won-backed stablecoin.
KB Financial Group launched a task force in June to coordinate digital asset strategies across its subsidiaries, including insurance, card, securities, and asset management units. The task force recently created a permanent “stablecoin division” to respond to faster-than-expected policy developments.
Shinhan Bank said it is prioritizing a joint issuance approach through the Korean banking association rather than going it alone. At the same time, the bank is conducting technical tests for a won-based stablecoin that could eventually be used for payments on its food delivery app, “Danggeyo.” Shinhan is also exploring programmable money systems to support small businesses and targeted transactions.
Hana Financial is reviewing regulatory frameworks, infrastructure requirements, and global use cases for stablecoins, with particular attention to cross-border settlement and remittances. Its working group, composed of affiliates, is also preparing for custody services through BitGo Korea, a joint venture with global custodian BitGo.
Woori Bank has filed 20 trademarks related to won-backed stablecoins and is working through its “Digital Asset Team” to coordinate with industry associations on joint issuance and distribution models. The bank is also involved in the Open Blockchain and DID Association to verify technical standards.
Industry observers say that while South Korea’s legislative progress on stablecoins has slowed, banks and fintech firms are racing to be ready once rules are finalized. “With regulations shifting rapidly, no bank wants to be left behind when issuance is allowed,” one industry official said.
