Kakao Bank has reportedly moved into aggressive stablecoin development under founder Kim Bum-soo, while Naver is finalizing a merger with Dunam, the operator of South Korea’s largest cryptocurrency exchange Upbit.
The moves come as lawmakers push a stablecoin bill that could reshape the country’s digital financial landscape.
Kakao accelerates stablecoin development
According to local media reports, Kakao Bank is building blockchain infrastructure for its planned stablecoin, Kakao Coin, after an internal review. With a large user base across messaging, banking, and payments, Kakao aims to leverage its network to accelerate the adoption of stablecoins. Kakao founder Kim Bum-soo is reported to be leading the project. He was acquitted of market manipulation charges at his first trial in October.
The move comes as stablecoin usage increases globally. According to a report by TRM Labs, stablecoins will account for 30% of all on-chain cryptocurrency transactions in 2025, reaching record transaction volumes in August 2025. As financial institutions expand the integration of digital assets, Kakao is positioning itself as a leading issuer despite regulatory uncertainty.
South Korea’s National Assembly has yet to enact comprehensive stablecoin regulations. This uncertainty forces companies like Kakao to pursue projects amid competition and unclear rules.
Naver-Dunamu merger reorganizes competition
On Wednesday, Naver Financial and Dunum are expected to hold their respective board of directors meetings to approve a share exchange that will make Dunum a wholly owned subsidiary of Naver. The 20 trillion won merger will integrate Naver’s payment infrastructure (annual payment amount: 80 trillion won) with Upbit, one of South Korea’s leading virtual currency exchanges. Dunam founder Song Chi-hyun will acquire a 30% stake, reducing Naver’s stake to 17%.
The merger will enable instant distribution of stablecoins on Naver’s platform and is likely to leverage Dunamu’s regulatory experience. As reported by BeInCrypto, it could also lead to a listing in the US. Once the bill is clarified, the partnership could make Naver Dunam the top issuer of Won-backed stablecoins.
Analysts say the merger, which combines expertise in artificial intelligence, data, payments and digital assets, could set the standard for stablecoin deployment in South Korea. The move is widely seen as revolutionizing the country’s fintech sector.
Legislative competition will shape the future of regulation
Regulation remains a key hurdle. House Leader Kim Byung-ki, a member of the Democratic Party, submitted the “Value Stable Virtual Asset Issuance and User Protection Act.” The bill requires 100% cash or sovereign debt reserves, a 3% rainy day fund, and issuance on public blockchains such as Ethereum and Solana.
Other features include a 10-day redemption period and strict limits on interest or economic benefits. International issuers such as Tether and Circle must register and obtain a license to do business in South Korea.
The Financial Services Commission will handle licenses and the Bank of Korea will monitor risks. These ministries continue to discuss jurisdiction, as interagency issues remain, particularly those related to monetary policy.
Regarding the country’s crypto-asset laws, more than a dozen bills are being debated in parliament. However, unresolved disputes between regulators could lead to further delays.
Ultimately, regulatory clarity will determine whether Kakao and Naver Dunam introduce stablecoins to Korean finance, or whether these projects remain in the testing phase as global adoption continues elsewhere.
The article Kakao accelerates stablecoin plans as Naver merges with Upbit Operator appeared first on BeInCrypto.
