South Korea's Stablecoin Market Heats Up Ahead of Legislation

South Korea's stablecoin market is heating up as cryptocurrency exchanges, banks, and payment platforms form alliances and build infrastructure before legislation governing won-backed digital assets is finalized.

The Financial Services Commission is developing infrastructure for issuance, trading, and settlement of security tokens, which are expected to take effect on February 4, 2027. Industry officials view security tokens, stablecoins, and cryptocurrency trading infrastructure as major components of South Korea's emerging digital asset market.

Financial and technology companies are building closer ties with Dunamu, operator of South Korea's largest cryptocurrency exchange, Upbit. In November 2025, Naver Financial decided to pursue a comprehensive share swap with Dunamu, which is expected to be completed by December 31, 2026.