South Korea’s KakaoBank begins hiring as it moves forward with stablecoin development

South Korea’s KakaoBank is advancing its plans to develop a stablecoin pegged to the Korean won, even as regulators in the country remain divided over how to structure a national stablecoin framework.

According to local media and a hiring notice that can be found on its official website, KakaoBank has recently started hiring blockchain backend developers to help build out the infrastructure needed to develop its planned stablecoin, “Kakao Coin.”

KakaoBank is a mobile-first digital bank that is backed by Kakao Corporation, and it offers a full range of financial services through its app-based platform, including savings accounts, loans, and payment features.

KakaoBank’s past experience to support stablecoin rollout

The bank has been exploring the potential of blockchain-based financial products for quite some time now, and earlier this year, KakaoBank’s chief financial officer, Kwon Tae-hoon, confirmed that the bank had started evaluating stablecoin issuance and digital asset custody as part of its broader digital finance strategy.

At the time, Kwon said the bank was “reviewing various methods such as issuance and custody” and that it planned to “actively participate” in the digital asset space.

KakaoBank was an active participant in South Korea’s central bank digital currency pilot, which was led by the Bank of Korea, and according to Kwon, it had successfully executed wallet creation, remittance trials, and asset exchange functionalities during the test phase.

“For the past three years, we have been issuing real-name verified accounts for virtual asset exchanges and have been operating risk-related measures such as Know Your Customer (KYC) and Anti-Money Laundering (AML)-based monitoring,” Kwon said, adding that the bank’s prior experience would offer a competitive advantage in rolling out its stablecoin-oriented products.

The bank had been laying the groundwork for a stablecoin launch since as early as June, when it was reported that it had filed several trademarks related to potential stablecoin products, including brand names like BKRW and KRWB with the Korean Intellectual Property Office.

Fast forward to November, the digital bank is now looking to hire key roles, including backend developers with a solid understanding of smart contracts, token standards, and full node operations, signaling that it has moved from planning to actual technical development.

While no other official details regarding the scope or timeline of the stablecoin launch are available at the moment, KakaoBank is not alone in its pursuit of Korean won-pegged stablecoins in South Korea.

South Korea’s stablecoin appetite

Since the election of pro-crypto President Lee Jae-myung earlier this year, the Korean won-stablecoin market has become a key area of focus for both government-backed innovation efforts and private sector competition.

Kakao is joining other major tech and financial institutions like Naver, which has begun developing its own digital wallet service linked to a local stablecoin initiative in Busan.

The project is part of a larger integration plan between Naver Financial and Upbit, South Korea’s largest cryptocurrency exchange.

A number of won-pegged stablecoins have already started surfacing in the market, and more appear to be on the way. 

Even big names in South Korea’s traditional financial sector, such as KB Financial Group, Shinhan, Hana, and Woori, have formed a consortium and partnered with major tech players, including Kakao, Naver, and Samsung, to explore stablecoin issuance and infrastructure.

Stablecoin regulations have stalled

However, the regulatory landscape for stablecoins remains in a state of limbo, and progress has faced delays as regulators continue to debate the roles that banks and tech companies should play in this emerging ecosystem.

As previously reported by Invezz, the Bank of Korea has been pushing for tighter control over stablecoin issuance and has suggested bringing it under the exclusive purview of licensed banks, arguing that these digital assets function much like deposit instruments.

But some lawmakers, regulators, and private sector players are concerned that giving banks too much control may stifle innovation and prevent technology firms from building competitive blockchain-based financial services.

At the moment, three separate bills aimed at establishing a legal framework for stablecoins are being reviewed in the National Assembly, but so far, they have failed to make meaningful progress toward finalisation.

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