South Korean banks are accelerating their entry into the crypto and stablecoin markets amid anticipated regulatory reforms that could reshape the country’s financial landscape. Major lenders, including Shinhan, Woori, KEB Hana, and KB Kookmin, are forming in-house task forces and digital asset teams to explore services such as stablecoin issuance, crypto custody, and blockchain partnerships. These initiatives reflect a broader shift as the country’s financial institutions prepare to operate within a more structured digital asset framework [1].

Woori Bank is among the pioneers in this transition. The bank has established a Digital Asset Team under its New Business Alliance Platform Department, tasked with researching and developing strategic crypto services. In addition, it is reviving a past crypto project through a business agreement with a blockchain startup and plans to form a consortium to enter the stablecoin market. These actions were reportedly already in motion by November 2023, according to Maeil Business Newspaper [3].

KB Kookmin Bank is also making significant strides. It launched a Digital Asset Response Council in June 2024, which coordinates a unified approach across its financial group affiliates, including credit card, insurance, and securities firms. The council is preparing strategies to respond swiftly to potential policy changes and is actively engaging in internal and external partnerships to strengthen its digital asset infrastructure [2].

The shift marks a dramatic reversal from the previous stance of South Korean banks. In 2018 and 2019, major institutions had explored crypto initiatives but paused them following the Moon Jae-in administration’s restrictions on Initial Coin Offerings (ICOs) and broader crypto regulations. However, under President Lee Jae-myung, who has advocated for digital finance innovation since taking office in 2025, the regulatory environment has become more accommodating [3].

The National Assembly is currently reviewing several proposed reforms, including legislation that would allow financial institutions to issue stablecoins under a regulatory framework. If passed, this legislation would establish a legal foundation for banks to offer stablecoin-based services, enabling faster cross-border transactions and digital asset custody solutions. Banks are treating the potential reforms as a green light and are moving quickly to secure their positions in the emerging market [1].

Beyond internal restructuring, lenders are taking proactive steps to protect their interests in the crypto space. KB Kookmin, for instance, has submitted 32 trademark applications for stablecoins tied to the Korean won and 49 for stablecoins based on other currencies. Meanwhile, Shinhan Bank has assembled a 20-member crypto task force to support the development of digital asset services. Smaller institutions, such as K Bank and Busan Bank, are also forming specialized teams to explore blockchain and digital finance opportunities [2].

The growing interest in stablecoins is evident among both retail and institutional investors in South Korea. As dollar-pegged stablecoins like USDT and USDC gain traction, traditional financial institutions face increasing pressure to offer regulated and competitive crypto services. This trend aligns with a broader regional movement in Asia, where countries like Malaysia and the Philippines are also advancing their regulatory frameworks for digital assets [4].

Despite the government’s support for innovation, it remains cautious about risks such as money laundering and investor protection. For example, crypto exchanges are required to store significant portions of user funds in cold storage to mitigate security threats. Industry analysts suggest that South Korean banks’ success in the crypto space will depend on their ability to balance regulatory compliance with user convenience [6].

With the National Assembly’s review of key legislation expected to conclude soon, the next few months will be critical in determining the pace and scope of South Korean banks’ expansion into the crypto and stablecoin markets. As the regulatory environment becomes clearer, these institutions are well-positioned to play a pivotal role in shaping the future of digital finance in Asia [3].

Source:

[1] South Korean Banks Prepare Crypto Biz Ahead of New … (https://cryptonews.com/news/south-korean-banks-scramble-to-ready-crypto-biz-plans-ahead-of-regulatory-reforms/)

[2] South Korean banks accelerate plans for crypto and … (https://www.dimsumdaily.hk/south-korean-banks-accelerate-plans-for-crypto-and-stablecoin-ventures/)

[3] South Korean banks scramble to develop cryptocurrency … (https://www.panewslab.com/en/articles/438e7f31-8a45-4bf5-bdf5-569ec9279465)

[4] Trump push drives stablecoin urgency in Asian financial hubs (https://timesofindia.indiatimes.com/business/international-business/trump-push-drives-stablecoin-urgency-in-asian-financial-hubs/articleshow/123069105.cms)

[6] The Changing Face of Cryptocurrency: Regulation, … (https://www.onesafe.io/blog/evolving-crypto-regulations-innovation)