South Korea's Stablecoin Market Heats Up Amid Regulatory Uncertainty

South Korea's cryptocurrency market is heating up as companies prepare for a won-denominated stablecoin market, even though legislation governing digital assets remains unfinished. The Financial Services Commission is developing infrastructure for issuance, trading, and settlement of security tokens.

Dunamu, operator of South Korea's largest cryptocurrency exchange, Upbit, has formed alliances with financial and technology companies. Naver Financial decided to pursue a comprehensive share swap with Dunamu in November 2025, followed by the planned share exchange on December 31. Hana Financial Group and Samsung affiliates have also invested in Dunamu.

Kakao Group, however, chose a different strategy by partnering directly with global stablecoin issuer Circle. They signed a strategic agreement in July to cooperate on blockchain-based payment infrastructure and digital asset technology.