South Korea’s biggest banking groups are racing to develop and launch crypto and stablecoin services in anticipation of a sweeping legislative transformation.
Banks, according to a Maeil Kyungjae article, South Korea’s leading business newspaper, have already begun to establish special in-house units and strategic partnerships in preparation for the legalization of stablecoins.
The efforts are a direct response to expected regulatory reforms that will allow banks to issue and sell stablecoins for the first time, a significant shift in the country’s financial landscape.
The mobilization signals that the era of old-school crypto strategies by Korean banks is perhaps drawing to a close.
Central Bank Actions Mirror Wider National Shift Towards Digital Finance
Notably, on the 30th of July, the Central Bank of Korea (BOK) announced the establishment of a specialized “Cryptoassets Department” under the Financial Settlement Bureau, reinforcing institutional-level interest in cryptocurrencies.
The Central Bank of Korea (BOK) has been reorganizing its Digital Currency Lab in key strides to allow research into CBDCs and tokenized assets.
These plans align with South Korea’s President, Lee Jae-myung’s pro-crypto agenda and build support for national-level regulation.
The central bank’s actions constitute an institutional emphasis on digital assets and set the tone for a coordinated journey between the public and private sectors.
Banks Revive Crypto Plans Long Shelved With Political Shift
Banks like Woori and Shinhan had already ventured into crypto-related business way back in 2018–2019 but had to suspend them due to the Moon Jae-in administration’s strict policies, which included a blanket prohibition of Initial Coin Offerings (ICOs).
President Lee’s regime, however, has been an ardent champion of the digital asset sector since his inauguration in June, and the regulatory environment is changing.
Observing this realignment, banks are quickly reviving and scaling up earlier crypto initiatives.
Woori Bank, for example, has launched a Digital Asset Team to manage stablecoin development, digital wallets, and a stablecoin consortium with unknown blockchain firms.
Major Banks Create Internal Task Forces, Councils, and Collaborations
Some of South Korea’s top banks are now creating internal task forces and multi-affiliate councils to strategically develop their crypto strategies.
Kookmin Bank (KB) launched in June a Digital Asset Response Council that is tasked with developing rapid response scenarios and facilitating cooperation among its subsidiaries, credit card, insurance, and asset management businesses.
KEB Hana Bank has established a crypto working group among its affiliates and is reportedly focusing on WON currency-denominated stablecoins and related infrastructure.
Shinhan Bank, meanwhile, has assembled a 20-person task force focused on crypto strategy.
They’re also filing scores of trademarks for stablecoins, which suggests a long-term, serious commitment to the business.
Also Read: South Korean Authorities Urge Caution Over Leveraged Crypto Trading on Upbit & Bithumb Exchanges
Competition Picks Up as Banks Scramble to Master Upcoming Crypto Services
The rush is apparent among South Korean banks: first-to-market will have an advantage in a rapidly growing business.
K Bank, Upbit’s primary exchange partner, recently set up its own digital asset task force. Local institutions such as Busan Bank are also setting up blockchain teams.
Banks in general are positive that legalization of stablecoins is imminent and will be crucial with all-out market entry in the near future, Maeil Kyungjae says.
With its own funds reorganized, its relationships formed, and regulatory support in place, South Korea’s financial system is set for a revolutionary transformation, one that can make it a global leader in the era of regulated digital money.