South Korea’s four largest banks—KB Kookmin, Shinhan, Hana, and Woori—are allegedly getting ready to meet Circle to discuss a potential alliance in the stablecoin market.
The meeting, which is planned to occur during Tarbert’s visit to Seoul this month, is part of the banks’ efforts to gain access to the stablecoin sector as South Korea starts working toward establishing a regulatory framework for digital assets.
South Korea’s Big Banks Plan Stablecoin Meeting With Circle
Major commercial banks in South Korea have started accelerating preparations for stablecoin issuance in anticipation of the enactment of relevant legislation that will affect the sector.
Reports claim they have had discussions centered around collaborations not just with domestic fintech and big tech companies, but also with overseas companies issuing dollar-based stablecoins like Circle.
Four major banks (KB Kookmin, Shinhan, Hana, and Woori) are now considering meeting with Heath Tarbert, President of USDC issuer Circle, who is supposed to be in Korea this month.
According to industry sources, these banks have planned individual meetings as well as joint meetings attended by multiple banks. They even suggest that senior officials from the parent companies of each bank may also be in attendance.
The discussions are expected to primarily be about cooperation in areas such as the domestic distribution and remittance of dollar-denominated stablecoins, international transactions, and the issuance of won-denominated stablecoins.
Each bank is also actively getting ready for stablecoins and has been exploring collaborations with domestic virtual asset companies.
KB Financial Group has operated a group-level “Virtual Asset Response Council” since June 20, and its “Stablecoin Division” has officially become a permanent organization.
Shinhan Bank, on the other hand, will independently pursue technological verification of a KRW stablecoin-based payment system.
Hana Financial Group has focused on analyzing systems, businesses, and infrastructure as the country prepares for the issuance of a KRW stablecoin, while Woori Bank now has a “Digital Asset Team” to respond to the virtual asset business and has taken proactive steps, including filing a trademark application.
South Korea‘s crypto industry is changing under new president
The moves from the four major South Korean banks come as South Korea’s cryptocurrency market has started its transition from a retail-driven boom to a more institutionalized and regulated framework, with a focus on corporate participation and regulatory measures.
This is all possible because the current President Lee Jae-myung is a fan of crypto. Key policy developments under him have included the introduction of spot Bitcoin ETFs, progress on won-pegged stablecoins, and strict enforcement against unregistered operators and KYC breaches.
For now, specific implementation details remain undisclosed, and only task titles are currently public. The industry refers to Lee’s campaign pledges for clues about future plans.
The government reportedly aims to submit 87% of the necessary amendments to the National Assembly by next year, but observers think rapid legislative progress is uncertain due to the complexity of revising 951 laws.
Meanwhile, regional competition continues to intensify, with Japan, Hong Kong, and Singapore moving forward with their respective digital asset regulations, prompting Korea to expedite its legislative debates on stablecoin regulation.
Despite the ruling party’s majority support for crypto development, the initiative’s ranking among strategic priorities remains low, creating uncertainty about its future implementation.
Won-Stablecoin Bills Advance in Parliament
Several bills on won-based stablecoins are moving through South Korea’s parliament.
Key proposals include Min Byung-deok’s Digital Dasan Framework Act, Ahn Do-geol’s Value-Stable Digital Assets Act, and Kim Eun-hye’s Payment Innovation Act. These discussions are expected to gain more momentum once the FSC releases its government-backed bill, alongside these lawmakers’ proposals.
South Korea and Japan Race Ahead
Previously in June, Eight major South Korean banks revealed plans to launch a stablecoin pegged to the won. A joint venture could be launched by the end of this year or early next year, once legal regulations are in place.
Meanwhile, Yonhap reported that the four big banks, KB Kookmin, Shinhan, Hana, and Woori, are considering meetings with Circle President Heath Tarbert, who will visit Korea next week.
Japan is also moving toward its first yen-based stablecoin. Nikkei reported that fintech firm JPYC could receive regulatory approval to issue it as soon as this fall.
BOK Governor Urges Caution
However, experts have also voiced concerns over potential risks.
Bank of Korea’s governor recently warned about the risks of won-based stablecoins. He says that only licensed banks should should issue the stablecoin to avoid currency risks. While Senior Deputy Governor Ryoo Sang-dai said won-based stablecoins should start with regulated banks and later expand to non-banks.
