South Korean Firms Turn to Overseas Stablecoin Infrastructure Amid Regulatory Gridlock

South Korean companies have used stablecoins for nearly ₩860 billion (approximately $623 million) in cross-border payments, according to a recent analysis by Web3 market research firm Tiger Research.

The data shows that from January 2021 through September this year, stablecoin payments between South Korean and overseas companies totaled approximately $620 million (₩860 billion), excluding deposits and withdrawals on crypto exchanges and investment-related transactions.

Several major South Korean conglomerates have already launched pilot programs abroad for stablecoin-based international remittances and payments. For example, Hyundai Motor and Hyundai Card completed a proof-of-concept in July, converting $20,000 into Tether (USDT) and transferring it to its Mexican sales subsidiary.

The inability for corporations to open crypto trading accounts in South Korea is driving companies to hold stablecoins overseas or convert them to cash in places like Hong Kong before bringing funds back into the country. 'Missing the Golden Window Could Make Repatriation Difficult', said Cho Yun-sung, senior researcher at Tiger Research.