Kakao Pay up 162%… Anticipation for Stablecoins

KRW-based Stablecoins

Government Expected to Accelerate Introduction

Surge for Me2on, Thezen, etc.

US Circle Rallies After Listing

With the inauguration of the new administration, expectations for the introduction of KRW-based stablecoins have grown, leading to sharp gains in related stocks. Stablecoins are cryptocurrencies pegged to assets like the dollar to minimize price volatility.

According to the Korea Exchange (KRX) on the 22nd, Kakao Pay soared 162.71% in the past month. The prospect that the payment market could expand with the introduction of a KRW stablecoin has drawn strong buying, with the price hitting the upper limit on the 9th and 20th. Other related stocks such as Me2on (276.28%), Thezen (105.85%), Hecto Financial (94.19%), and LG CNS (70.61%) also rose during the same period.

It is analyzed that stock prices jumped as the government and ruling party moved to speed up the adoption of stablecoins. On the 10th, Min Byung-deok, a member of the Democratic Party of Korea, officially proposed the Digital Asset Basic Act, which includes permitting the issuance of KRW stablecoins. With the Lee Jae-myung administration having prioritized stablecoin legislation as a presidential campaign pledge, the ruling party is now seen as supporting the bill.

The continued spotlight on stablecoin-related stocks in global markets has also had a positive impact. On its listing day, Circle saw its price soar 188.69% from the closing price. Circle, which issues USD Coin (USDC) stablecoin, is the world’s second-largest stablecoin issuer after Tether (USDT).

Lee Chang-young, a researcher at Yuanta Securities, noted, “KRW-based stablecoins still lack a clear issuer or distributor, making it hard to identify the main beneficiaries,” adding, “As the global market expands and domestic policy shifts from regulation-focused to development-oriented, industry volatility is expected to remain high for the time being.”

Reporter: Maeng Jin-gyu maeng@hankyung.com