As the global financial landscape moves into a digital era, South Korea – one of Asia’s leading fintech hubs – is witnessing a historic turning point: stablecoins are about to be legalized. Facing this wave of major changes, major banks in the country have quickly jumped into the game, proactively preparing to not be left behind.
Respond quickly to new games
As soon as the new policy signals were issued, a series of banking giants such as Woori Bank, Shinhan Bank, KEB Hana and Kookmin Bank (KB) quickly established specialized units on digital assets and stablecoins. These organizations were tasked with researching, testing and implementing business models associated with digital wallets, digital asset custody and especially stablecoin issuance.
A banking expert shared:
“Although the law has not yet officially come into effect, we understand that preparation time is of the essence. Whoever moves first will gain market share.”
This action not only shows the initiative of banks, but also shows the seriousness and great expectation that stablecoins will become the foundation of the new financial ecosystem.
Restarting plans that were once "frozen"
In 2018-2019, many Korean banks had intended to enter the crypto market but had to “freeze” their plans due to strict control policies. However, the situation has completely changed under President Lee Jae-myung, who has an open view on digital assets.
Woori Bank, for example, has established a nine-member Digital Assets team that is responsible for digital wallets, stablecoins, and custody. In addition, Woori has signed a partnership with a blockchain startup and is forming a stablecoin issuance alliance with other businesses.
Synchronized action across the banking industry
Not only Woori, Kookmin Bank (KB) has also established a Digital Asset Response Committee, building many strategic scenarios to prepare for when the law is officially enacted. This bank has even registered up to 81 stablecoin-related trademarks, including stablecoins tied to the won and foreign currencies - clearly demonstrating its ambition to lead the market.
KEB Hana and Shinhan Bank are also not left out. While Hana Bank focuses on developing a stablecoin pegged to the won and global custody services, Shinhan has deployed a task force of nearly 20 people specializing in crypto research.
Conclusion: Opportunities are not for the slow-witted.
The legalization of stablecoins in South Korea is not only a turning point for the domestic financial market, but also a strategic lever for banks to reshape their roles in the digital financial era. The drastic actions of the Korean banking giants are a wake-up call for the entire global financial industry.
