Kakao Pay Seeks Talks With Banks on Korean Won Stablecoin Partnership

Kakao Pay has approached banks to discuss cooperation on a Korean won stablecoin business, the Seoul Economic Daily reported on June 16.

The company recently asked major commercial banks and other lenders to hold talks on a Korean won stablecoin consortium, the report said.

Kakao has been reviewing a Korean won stablecoin business through affiliates including KakaoBank and Kakao Pay. The company has also been cited as a potential standalone player given its KakaoTalk-based platform, internet bank, and payment and remittance infrastructure.

A Korean won stablecoin business requires more than issuance and distribution. It also needs reserve asset management, payment networks, custody services, and a base of corporate and institutional clients. Kakao appears to be seeking bank partnerships to broaden the foundation for the business.

The report said separate talks are also under way with some regional financial groups. BNK Financial Group and JB Financial Group are among the names mentioned, with the potential for future cooperation with larger financial groups also drawing attention.